Explaining stablecoin risks and the need for reporting criteria

On March 5, the AICPA published a comprehensive set of criteria for reporting on the digital assets known as stablecoins. The criteria are designed to address “the need for consistency, transparency, and trust in the stablecoin environment.”

Jay Schulman, CPA, is a principal at RSM, and he’s focused, in his job and his role on AICPA committees, on digital assets.

In this episode of the Journal of Accountancy podcast, Schulman explains areas of focus for the AICPA’s Digital Assets Working Group and the group’s attestation subcommittee. That work includes the stablecoin criteria.

Resources:

n  Accounting for and Auditing of Digital Assets (practice aid)

n  Blockchain Universal Glossary

n  Stablecoin Reporting and Assurance landing page

What you’ll learn from this episode:

·         Schulman’s explanation of the difference between bitcoin and stablecoins.

·         The reasons that an AICPA committee and subcommittee on attestation are focused on stablecoins.

·         Examples that remind Schulman of how different generations view money.

·         Why Schulman refers to the criteria as “transparency-oriented.”

·         The resources Schulman recommends related to stablecoins and the priorities of the Digital Assets Working Group.