SAB 122: A Step Toward Greater Clarity in Crypto Asset Accounting & Reporting

SAB 122: A Step Toward Greater Clarity in Crypto Asset Accounting & Reporting

On January 23, 2025, the U.S. Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 122 (SAB 122), returning to a principles-based approach to accounting for safeguarding obligations of crypto assets. This update rescinds SAB 121 and directs reporting entities to well-established U.S. GAAP and IFRS frameworks, aiming to provide clarity and consistency in financial reporting while preserving critical disclosure requirement…