Recently, AICPA released an update on their stance on digital assets. You can read the full update here.
First of all, when we speak of digital assets we are primarily focused on crypto assets or anything that is registered on the blockchain.
Similar to the SEC, AICPA is primarily concerned with how digital assets should be classified. Periodically, AICPA updates their white paper to reveal their stance. In the most recent white paper, AICPA focused on the concept of smart contracts. Smart contracts or a form of contract that is executed and fulfilled without the use of an intermediary. The most clear example would be if there was a contract that stipulated if X condition was to happen, then Y monies shall be paid out.
AICPA also addressed crypto lending and how this should be accounted for. Crypto lending, also known as De-Fi was a huge growth area in 2020-22. Recently, there has been some controversy as a De-Fi token (Luna) collapsed in a matter of days.
