#65: Statement of Digital Assets (SoDA) with Samuel Leichman

May 30, 2024

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Blockchain technology is open source right, but to advance the development of accounting standards for digital assets, we need accounting bodies to be more open for collaboration in these changing times.

This revolution cannot take place in an ivory tower.

A group of accountants at Propeller Industries have answered the call, and are pioneering a new reporting methodology for digital assets, through the Statement of Digital Assets, or short for SoDA.

SoDA is a standardized reporting methodology that bridges Generally Accepted Accounting Principles (GAAP) with on-chain holdings. By providing a transparent lens through which to view digital assets, SoDA demystifies the often-opaque GAAP balance sheets, offering stakeholders a clear picture of a firm's liquidity and digital asset holdings.

On Episode 65, I spoke with Sam Leichman, the leader of the Blockchain Practice Area at Propeller Industries, who is leading the SoDA initiative.

Propeller provides ‘full stack’ CFO and accounting outsourced services to VC-backed startups. Currently they work with over 50 web3 clients including Optimism, cLabs, Figment, POAP, and VeeFriends.

Topics covered;

Episode intro (00:47)
Sam’s background & story learning blockchain (3:04)
FASB digital assets 2023 update (9:26)
SoDA vision’s & origin story (14:44)
Thanks to our sponsor Web3Finance Club (23:30)
Contributing to SoDA (25:12)
Disclosures required in SoDA (29:54)
Is SoDA for management reports or annual financial statements (33:30)
SoDA reports in sub-ledgers (35:35)
Use cases for SoDA (39:55)
Propeller Industries & its web3 accounting services (43:46)
Roadmap for SoDA (47:17)
Favorite maxim of Sam (50:06)

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LinkedIN: https://www.linkedin.com/in/samleichman/

Twitter: https://x.com/samleichman

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