One of them is the U.S. Securities and Exchange Commission (SEC), which has recently announced settled charges against technology company NVIDIA Corporation (NASDAQ: NVDA), over “inadequate disclosures concerning the impact of cryptomining on the company’s gaming business,” the agency said on May 6. According to an SEC press release: As the agency further explained, “NVIDIA customers increasingly used its gaming GPUs for cryptomining,” with the growing demand and interest in crypto in 2017. The tech giant did report material growth within its gaming business but the SEC accused it of withholding that this increase “was driven in significant part by cryptomining,” along with the information about “these significant earnings and cash flow fluctuations related to a volatile business for investors to ascertain the likelihood that past performance was indicative of future performance.”
Where the problem lies
As stated in the press release, the company was required to disclose such details and, according to Kristina Littman, the Chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit:
Is SEC on an anti-crypto crusade?
Meanwhile, the SEC continues to wage a battle on another crypto-related front. Specifically, it is in the middle of litigation against Ripple Labs and two of its executives, which it accuses of selling over $1.3 billion in unregistered XRP tokens between 2013 and 2020. Elsewhere, in mid-March, a group of U.S. congressmen appealed to the agency and its chair Gary Gensler, arguing that its crypto regulation and information-seeking practices were stifling innovation, as Finbold reported. At the same time, Jan van Eck, the chief executive of global investment management firm VanEck, has expressed his belief that the SEC was holding the spot Bitcoin exchange-traded fund (ETF) hostage over failure to approve the product.
