AICPA Requests Comments on Proposed Framework Related to Asset-Backed Tokens

The AICPA has published an exposure draft (ED) that “presents criteria for reporting on the sufficiency of cash, cash equivalents, or other assets for redeeming outstanding asset-backed fiat-pegged tokens in accordance with the token issuer’s terms at a specific measurement point in time.” These criteria apply to three broad topics:

• “Token issuer’s redeemable tokens outstanding and related disclosures.”
• “Redemption assets available to redeem redeemable tokens outstanding and related disclosures.”
• “Comparison of the balance of redemption assets available to redeem tokens and the token issuer’s redeemable tokens outstanding and related disclosures.”

Comments on the ED are due by January 29, 2024. For more information, see the press release on the AICPA’s Web site.