SEC Issues Staff Accounting Bulletin on Obligations to Safeguard Crypto-Assets

The SEC staff has issued Staff Accounting Bulletin (SAB) No. 121, which provides entities with interpretive guidance on the recognition, measurement, and disclosure of obligations to safeguard crypto-assets held for their platform users and related risks and uncertainties (e.g., technological, legal, and regulatory) that may be unique to these arrangements. The SAB’s purpose is to “enhance the information received by investors and other users of financial statements about these risks, thereby assisting them in making investment and other capital allocation decisions.”