The digital asset ecosystem is rapidly evolving. In this rapidly evolving environment, trust is more important than ever for investors, and audit committees have a critical role to play when it comes to this emerging area.
New data confirms that digital assets are no longer the exclusive domain of crypto-native companies. They are gradually becoming part of the reporting environment. CAQ analyzed Form 10-Ks of S&P 500 companies filed in 2025 and found that 47 companies (about 9 percent) mentioned digital asset-related information. Furthermore, the Fall 2025 survey revealed that 22% of audit partners said that companies in the primary industry sector have exposure to digital assets, a significant increase from the 11% reported in Spring 2025.
These changes may expand audit committee agendas beyond the boundaries of traditional financial reporting. Latest resources from the Center for Audit Quality, Auditor’s role in digital assets: current and futureHere we provide an overview of this current state of affairs and explore how public company auditors are responding to stakeholder needs.
But what does this mean for audit committees and boards? Let's unpack it.
Evolving regulatory landscape
Developing comprehensive legislation related to digital assets has become a priority for Congress. Important milestones are Guidance and establishment of national innovation in the US stablecoin law (GENIUS Act), signed July 18, 2025. The GENIUS Act promotes transparency and accountability by requiring monthly reserve reporting to be reviewed by a registered public accounting firm.
Separately, the SEC is focused on clarifying the oversight of digital assets. In January 2025, the SEC announced a Crypto Task Force aimed at fostering innovation while protecting investors. These developments highlight the importance of staying up to date with regulatory changes that may impact a company's operations.
The role of the audit committee: Oversight beyond financial statements
As the digital asset ecosystem rapidly evolves, the responsibilities of audit committees are also expanding. Although the purpose of financial statement audits is to obtain reasonable assurance that the financial statements are free of material misstatement, these audits are not a “stamp of approval” for a company's business strategy or the merits of its digital asset decisions. To fulfill their oversight duties, audit committees may need to go beyond traditional financial reporting to address the operational and technical nuances unique to the digital asset landscape.
To support robust oversight and risk management efforts, audit committees are increasingly working with auditors to perform specialized attestation work. These efforts provide targeted transparency into specific risks posed by digital asset activities, including:
- Asset protection: Evaluate corporate or third-party administrator controls over private key management to prevent and detect unauthorized access or loss.
- Booking transparency: Those involved in stablecoins examine monthly reserve reporting to ensure that assets are backed one-to-one by authorized reserves, as is increasingly required by laws such as the GENIUS Act.
- Risk and control preparation: Engage in a “readiness assessment” to identify process gaps and develop effective controls to address digital asset risks before a formal audit occurs.
By engaging with these specialized services, audit committees can gain a deeper and more detailed understanding of a company's digital asset operations. This proactive approach not only helps mitigate emerging risks, but also increases the overall quality and reliability of information provided to investors and stakeholders.
Important questions about audit committee oversight
It is the responsibility of audit committees to provide informed oversight and risk management as companies move forward with their digital asset initiatives. Consider the following key questions to help frame your next discussion with management and external auditors.
- Strategy and expertise: Does your company have the necessary expertise, including at the executive and board level, to effectively use, monitor, and report on digital assets?
- risk assessment: How do businesses identify, assess, and mitigate the risks inherent in blockchain, such as the “immutable” nature of transactions, where loss or theft of assets may be irreversible?
- Regulatory changes: Are companies prepared for future reporting and certification obligations such as those set out in the GENIUS Act?
- Stakeholder transparency: What information do investors and customers expect from our digital asset management and how do we meet those needs?
By asking these questions, audit committee members can ensure that the company's digital asset strategy is based on a framework of accountability and transparency.
For the future
In an environment where technology often outpaces regulation, trust is the ultimate currency. By prioritizing transparency and leveraging the independent expertise of auditors, audit committees and boards can help companies navigate the digital asset frontier with confidence.
See complete resources: To dig deeper into the current state of digital assets, Check out the complete resource here.
