United States of America: Adopted SEC Staff Accounting Bulletin No. 121 regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users

On 31 March 2022, the Securities and Exchange Commission's (SEC) staff adopted the Staff Accounting Bulletin (SAB) No. 121 regarding the accounting for obligations to safeguard crypto assets an entity holds for platform users. The SAB serves as an interpretation guideline, and the staff notes that offering crypto transaction services poses unique risks that impact the entity offering those services' operations and financial condition. Therefore, according to the SAB, the entity "should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for its platform users".