Compliance
The U.S. Securities and Exchange Commission (SEC) announced on Thursday that it is dropping its civil fraud lawsuit against SolarWinds and its Chief Information Security Officer, Tim Brown. The case involved a supply-chain attack launched by Russian hackers in 2020 through the Orion software, and the SEC had accused the company of failing to disclose known security risks. The dismissal was made with prejudice, but the SEC stated that it does not affect other cases. SolarWinds welcomed the decision, stating that its team acted appropriately.
The Financial Accounting Standards Board (FASB) voted unanimously on Wednesday to add the accounting for transfers of crypto assets, including wrapped tokens and receipt tokens, to its high-priority technical agenda. The project may expand the scope of the 2023 guidance, Crypto Assets (Subtopic 350-60), in response to stakeholder feedback and recommendations from the President's Working Group on Digital Asset Markets.
A report released by cybersecurity company Omega Systems indicates that over half (53%) of CFOs in the financial services industry view keeping pace with changing cybersecurity regulations as their primary concern. Despite heightened regulatory risks, many companies remain constrained by insufficient budgets, legacy infrastructure, and inefficient manual processes. The report also found significant divergence between CFOs and CIOs in regulatory perception, with only 38% of CIOs viewing regulatory changes as a top issue.
The U.S. Attorney's Office for the Western District of Washington announced Thursday that Nevin Shetty, former Chief Financial Officer of retail software company Fabric, was found guilty of four counts of wire fraud for embezzling $35 million from the company into his own cryptocurrency platform. The case stems from a covert transfer in April 2022, with the funds nearly wiped out following the cryptocurrency market crash.
The Financial Accounting Standards Board (FASB) successfully resolved political pressure arising from the income tax disclosure rule (Topic 740), as the spending bill signed by President Trump this week did not include provisions from earlier proposals that threatened FASB funding. FASB Chairman Richard Jones stated at a press conference that the standard has been issued and is in effect, and companies will adopt it in this year's financial reports. Although some Republican lawmakers attempted to block the rule, the FASB adhered to its standard-setting process, and experts believe the rule will continue to be implemented.
Real Brokerage has reached an "agreement in principle" to settle the pregnancy discrimination lawsuit brought by its former Chief Financial Officer, Michelle Ressler. The court has dismissed the case accordingly, but retains the right to reopen the lawsuit within 30 days. The settlement agreement is still subject to finalization and stipulates that the company owes no payment to Ressler, who must reimburse personal expenses the company alleges.
FASB voted 6-1 on Wednesday to advance a stablecoin accounting project, focusing on clarifying whether stablecoins and similar assets can be treated as cash equivalents. This move stems from feedback on the 2025 agenda consultation and recommendations from President Trump's Digital Asset Working Group, aiming to reduce uncertainty in GAAP application.
The Federal Reserve announced on Wednesday that it would cut its key interest rate by 25 basis points to a range of 3.75%-4%, the second rate cut of the year. Although the decision received majority support, there are internal differences over the future path. Chair Powell warned that a December rate cut is far from certain and cited uncertainties including tariffs, AI investment, and a potential government shutdown.
The latest report jointly released by the Massachusetts Institute of Technology (MIT) and the Council of Supply Chain Management Professionals (CSCMP) shows that despite significant changes in the global policy environment in 2025, approximately 73% of companies still maintain their supply chain sustainability commitments. Based on a survey of 1,203 supply chain professionals across 97 countries, the report finds notable differences between North American and European companies in drivers, data tools, and measurement methods, while also pointing out that supplier data availability is the biggest obstacle to measuring Scope 3 emissions.