Crypto company Liberty Blockchain, backed by former President Trump, abruptly cut ties with its auditor yesterday amid growing concerns over financial transparency. The move comes at a time when regulatory oversight of crypto firms is experiencing a dramatic shift under the new administration.
Liberty’s decision follows the broader trend of regulatory easing that began in January 2025. The SEC has dropped or paused a whopping 60% of enforcement cases against crypto companies since then. Pretty convenient timing, right?
The regulatory floodgates have opened for crypto since 2025, with enforcement cases vanishing faster than blockchain promises.
The auditor in question had been flagged by the PCAOB, which had identified crypto assets as a 2025 inspection priority. But with Paul S. Atkins now running the SEC and openly opposing “regulatory overreach,” the future of such inspections remains murky at best. Many industry experts believe PCAOB inspections will significantly decrease, similar to what occurred during Trump’s first term.
“We’re moving towards a more innovation-friendly auditor,” Liberty’s CEO explained in a press release that somehow forgot to mention the SEC bar against their previous firm. Funny how those details slip through the cracks.
This shake-up happens against a backdrop of major regulatory changes. The Trump administration established a Presidential Working Group on Digital Asset Markets through executive order. The SEC dismissed lawsuits against major players like Coinbase and Kraken without penalties. The Justice Department even dismantled its National Cryptocurrency Enforcement Team in April.
Critics aren’t staying quiet. Senator Elizabeth Warren has called for an SEC Inspector General probe into potential Trump influence. Public Citizen points to $250 million in campaign investments from crypto giants as the real driver behind the regulatory retreat. Investors concerned about these regulatory shifts should establish clear investment goals to navigate the increasingly volatile cryptocurrency landscape.
Some enforcement continues. The SEC recently charged the founder of a defunct crypto trading firm with fraud and penalized a NYC crypto company for false statements.
But with Hester Peirce leading the new Crypto Task Force and former VC crypto policy head Brian Quintenz nominated to lead the CFTC, the message is clear: the crypto industry’s winter of regulatory discontent has thawed considerably.
Liberty Blockchain’s auditor switch? Just another symptom of the times. The controversy comes as the GENIUS Act recently established a federal framework for stablecoins, further signaling the administration’s pro-crypto stance.
