Title: Cryptocurrencies: Time to consider plan B
Headings: Cryptocurrencies: Time to consider plan B
Cryptocurrencies: Time to consider plan B
Cryptocurrency – despite its name – is not accounted for as currency
Overview of tokens, cryptocurrencies and blockchain
What are digital tokens?
Regulation of digital tokens
How are cryptocurrencies obtained?
The accounting possibilities for cryptocurrency
Is the accounting for all digital token types the same?
Fitting cryptocurrency into today’s GAAP
Accounting considerations
What are the implications of the current accounting model?
Our proposal
A call to action
In the meantime…

Content: Blockchain and cryptocurrency, such as Bitcoin, are not synonymous. Rather, blockchain is the underlying technology that facilitates the creation and transfers of digital tokens, including cryptocurrency. Regulation of digital tokens
Digital tokens can be initially funded through offerings, referred to as “initial coin offerings” (ICOs). ICOs are attracting regulatory scrutiny. The SEC has stated that initial issuances of certain tokens may be required to be registered under securities law and that regulatory matters related to ICOs will be an enforcement priority for 2018. History also has proved that transparency, investor protection and market integrity are critical to ensuring that innovation continues. But today we are seeing substantial [distributed ledger technology]-related market activity that shows little or no regard to our proven regulatory approach. This concerns us. Jay Clayton, SEC Chairman
The US and other international governments have also raised concerns regarding cryptocurrencies. Given the recent volatility, governments around the world continue to consider if and how cryptocurrencies can be regulated.