AICPA Digital Assets Working Group Updates Q&A on Accounting for Crypto Lending Arrangements

The AICPA’s Digital Assets Working Group has updated Q&A 25 of its practice aid Accounting for and Auditing of Digital Assets to reflect the SEC staff’s views on accounting for crypto lending transactions. Specifically, the staff stated its belief that, in the scenario addressed in the Q&A, “it would be appropriate . . . to conclude that the lender transferred control of the crypto asset such that the asset should be derecognized by the lender.”