SEC Charges NVIDIA Corporation with Inadequate Disclosures about Impact of Cryptomining

Nvidia is in some hot water as the US securities regulators say Nvidia knew cryptocurrency miners had been eating into sales of cards meant for gaming which was contributing to supply issues, but had illegally withheld that fact from investors.

For years, video gamers have blamed shortages of PC graphics cards on cryptocurrency, who cards to generate digital coins through mining. The pandemic and the Trump administration's tariffs on Chinese imports have only worsened the situation, leading to skyrocketing retail and aftermarket prices. However, Nvidia has always dogged questions around cryptocurrency miners. This action validates concerns that PC gamers have been increasingly forced to compete with the cryptocurrency industry. Regulators are slow and in this pace passed industry they will have to do better.

In the order released on Friday, the Securities and Exchange Commission said Nvidia would pay $5.5 million to settle the allegations of inadequate disclosure.

The order mark sign of the SEC's emerging focus on virtual currencies. I don't think this is the win they think it is considering some of the more public and egregious offenses by people like Elon Musk. I guess this is a win in the right direction to make companies liable for the things they do and say.

I think this news comes because the SEC just it is hiring another 20 people to investigate and prosecute cryptocurrency fraud and cybercrime. I believe will see more enforcement action in the next year. I'm just hoping they actually go after the big offenders and don't attack retail.

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