Outlook for Digital Asset Companies in 2026: What to Expect in Your Next Audit

Audits of digital asset companies are entering a more mature and demanding stage. What began as a niche practice focused on emerging technology has evolved into a core component of the public markets. PCAOB inspectors have identified crypto audits as high-risk, new accounting rules have taken effect, and early audits at newly public digital asset companies are establishing benchmarks that others will be expected to follow.

For finance leaders, expectations are rising quickly. Auditors are probing more deeply, regulators are paying closer attention, and SOX requirements are expanding in scope and complexity. Understanding how the industry reached this point, and what these shifts mean for the year ahead, can help executives prepare with greater clarity and confidence.

A Short History

Until recently, only a small number of digital asset companies were publicly traded, about 46 worldwide by early 2025, including fewer than 25 that were listed on major U.S. exchanges. The limited number of public companies left auditors without a clear framework for evaluating these businesses. Each engagement relied heavily on professional judgement, often leading to inconsistent results across firms and industries.

As more digital asset companies went public, recurring issues quickly surfaced. Early audits revealed common problems:

• Immature controls: Rapid expansion left many companies without the documented processes, segregation of duties or evidence of review required in a public company environment. The collapse of FTX in 2022, though not a public entity, became a defining example of how quickly a business can unravel when basic controls are missing.
• Auditor unfamiliarity: Many audit teams were still learning how to test ownership of crypto assets, reconcile blockchain transactions and assess the fair value of tokens. PCAOB inspections from 2023-2024 identified widespread deficiencies in fraud testing, ownership verification and revenue recognition, highlighting the steep learning curve across the profession.
• Limited guidance: Before 2025, GAAP treated crypto as an indefinite-lived intangible asset, allowing only impairment losses to be recognized. The absence of authoritative standards created inconsistencies in reporting and prevented auditors from applying uniform benchmarks for valuation, reserves and custody.

The period of limited guidance and inconsistent practices is coming to an end. As more digital asset companies enter the public markets and regulators intensify their focus on audit quality, crypto audits are moving into the financial mainstream. The PCAOB’s 2024 inspection report highlighted crypto audit deficiencies and signaled a clear turning point: expectations for digital asset audits will now mirror those for banks and other financial institutions.

Outlook: What to Expect in the Year Ahead

Audit methodologies are formalizing

Auditors are moving away from improvisation toward standardized, defensible procedures. New approaches now include ownership tests that use blockchain message signatures or test transfers to verify control, independent analytics to confirm transaction activity and expanded fraud reviews focused on unusual transfers, wash trading and related-party transactions. As a result, audit requests will be more detailed, timelines longer and tolerance for informal explanations far lower.

SOX compliance is becoming more prominent

Many digital asset firms have treated SOX as a check-the-box exercise under 404(a), but first-year 404(b) audits are surfacing material weaknesses almost universally. The most common weaknesses involve custody, private key management and IT general controls. Even for companies not yet subject to 404(b), auditors are benchmarking performance against those standards, and control weaknesses increasingly lead to findings disclosed to investors.

New accounting rules raise the bar

Starting in 2025, crypto holdings must be measured at fair value each quarter. This requirement demands documented valuation policies, defensible pricing sources and independent review of valuations. The change introduces real profit and loss volatility and calls for transparent governance and clear communication with boards and investors.

Market conditions will drive audit focus

During downturns, auditors will intensify scrutiny around going concern assumptions, impairments and liquidity. In bull markets, they’ll test whether reconciliations, KYC/AML procedures and transaction monitoring can keep pace with growth. Future audits won’t just look backward; they’ll assess whether the control environment can withstand both expansion and contraction.

Emerging areas are expanding audit scope

Auditors are increasingly incorporating areas once considered outside the traditional financial audit. Proof of reserves, SOC reports from custodians, smart contract validations and cybersecurity controls tied to new SEC disclosure requirements are all moving from “voluntary” to “expected.” The PBC list for many digital asset companies now mirrors that of a financial institution.

Insights and Takeaways: What Executives Should Do Now

Anticipate tougher oversight

Audit scrutiny across the digital asset sector is intensifying. The PCAOB has made crypto a priority, and firms are tightening procedures to avoid repeat inspection findings. Finance leaders should budget additional time for audit requests, involve IT and operations early in the process and ensure documentation is complete before year-end. Treat SOX compliance as a leading indicator of audit readiness, not a box to check. Early 404(b) audits have surfaced widespread material weaknesses, particularly in custody, private key management and IT general controls, prompting auditors to apply those standards even to 404(a) filers. Conducting a gap assessment in advance and presenting a remediation plan to your board demonstrates maturity and preparedness.

Strengthen control foundations

Effective custody and key management controls remain the cornerstone of credibility. Control of private keys equates to control of assets, and weaknesses in this area are highly visible to auditors and investors alike. Implement multi-signature approvals, restrict and log wallet access and engage reputable third-party custodians when possible. These practices, along with periodic testing of key ceremonies, are now central to audit procedures. Broader market conditions will also influence audit focus as downturns heighten scrutiny of going concern, impairments and liquidity, while bull markets test whether reconciliations, KYC/AML processes and transaction monitoring can scale with growth. Stress-test both scenarios before auditors do to ensure resilience under changing conditions.

Prepare for fair value volatility

The new FASB standard requiring quarterly fair value measurement introduces real profit and loss volatility. CFOs and controllers should establish clear valuation policies that define pricing sources, fallback methods and review procedures. Boards and investors will expect transparent explanations for quarter-to-quarter swings tied to crypto holdings, and auditors will test not only the math but the governance behind it. Preparation and consistency will be key to avoiding unnecessary surprises during the audit process.

Elevate audit committee engagement

Audit committees are under increased scrutiny as regulators view them as the front line of oversight. Equipping committee members with sharper, more targeted questions can strengthen governance and build confidence with investors. Discussions should focus on asset ownership verification, related-party transactions, assurance over custodians and vendors and progress on remediation plans for known deficiencies. Ultimately, strong internal controls represent a strategic advantage. Companies that demonstrate disciplined control environments tend to secure lower costs of capital, stronger valuations and deeper investor trust.

Final Priorities for Digital Asset Companies

Audits of digital asset companies are maturing quickly. What used to be handled with flexibility is now subject to the same rigor applied in traditional industries. For finance leaders, the takeaway is simple: preparation matters. The companies that approach audit preparation with discipline will move through audits more smoothly, avoid public control disclosures and build credibility with investors.

The audit is not just about compliance; it’s a signal of whether your company is ready to operate at scale. To discuss how these changes may affect your next audit and how Weaver can help you prepare, contact us today.

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