Weekly Roundup 07/21/23 (Nasdaq reconsiders custody, the Torres doctrine) (EP.439)
On The Brink with Castle Island
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The SEC's Threat to Cryptocurrency
In March of 2022, the SEC published a pretty obscure accounting bulletin. SAB 121 states that anyone who report any company that reports to the SEC under US gap or international financial accounting regulations has to have a safeguarding option for crypto. That results in them creating a corresponding asset on their balance sheet and a corresponding liability. No one expects that there's parity between client custody assets and equity value of business.
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