Both FTX and FTX.US have successfully completed and passed all the requirements under the US Generally Accepted Accounting Principles (GAAP) audit, and they plan to continue outsourcing audits from them.
This great news was announced by the FTX CEO and founder Sam Bankman-Fried through his Twitter account page.
Audits by the US GAAP are done to check whether an entity conforms to the accounting principles, standards, and procedures of the Financial Accounting Standards Board (FASB). GAAP ensures that financial reporting is streamlined for transparency and consistency from one organization to another.
Whereas passing the GAAP may be a first for FTX, Coinbase and Kraken have historically passed the regulatory standards of FASB. President of FTX, Brett Harrison, said that although they are not the first crypto exchange to pass the GAAP audit, they remain excited to demonstrate their seriousness towards transparency to the rest of the crypto world and other regulators. “It is something that we’ve been working on for a couple of months, and we are excited about it,” Brett said
TFX’s trading model differs from most cryptocurrency exchanges in that it allows the trading of tokenized derivatives. Brett disclosed how FTX has constantly contacted regulators seeking to form a collaborative relationship through regulated trading activity. They can now rest with this new alliance.
When asked about the biggest issue affecting cryptocurrency exchanges, Brett answered that whether certain tokens should be classified as securities is the real tackle. If a token is classified as a security, the organization cannot offer unregistered security for trading to any unaccredited investor. Brett pointed out that this obscurity also put Ripple in trouble with the US Securities and Exchange Commission.
FTX, as their president explains, will keep a close watch on SEC Chairman Gary Gansler, who promises to make cryptocurrency regulation a priority and define the proper classification of digital assets.