SAB 122 Just Changed Everything for Crypto—But There’s a Catch
For the past two years, crypto accounting firms, banks, and exchanges have struggled with SAB 121, the SEC rule that forced financial institutions to classify customer crypto as a liability. It made custody a regulatory nightmare. But now, SAB 122 has overturned this rule—bringing a massive shift to crypto regulation.
While banks and stablecoin issuers are celebrating, there’s a hidden downside that few are talking about. As a crypto CPA or financial professional, understanding these changes is critical. In this deep dive, we break down the risks, the opportunities, and why the industry must act fast.
Stablecoins: The $1 Trillion Opportunity (And How You Can Capitalize On It)
A must read for stablecoin issuers, crypto companies, and policymakers looking to understand the booming $1 trillion stablecoin opportunity. Jeremy dives into the critical steps for mastering compliance, reserve management, and smart contract security, ensuring your stablecoin project not only survives but thrives in this competitive market.
What is a Stablecoin Auditor? Why You Need One
Discover the critical role of stablecoin auditors in ensuring transparency, trust, and compliance in the crypto ecosystem. Learn what stablecoin attestations are, why they matter, how they mitigate risks, and the best practices for selecting an experienced auditor in the evolving world of digital assets.
IRS Crypto Tax Rules in 2025: What You Need to Know to Stay Compliant
The IRS has kicked off 2025 with new crypto tax rules that have left many investors and brokers scrambling to make sense of their compliance obligations. From wallet-specific tracking requirements to delayed broker reporting mandates, the evolving landscape introduces complexity—but also clarity—for taxpayers and exchanges. Here’s what’s changing, what’s staying, and how you can stay ahead of the curve.
Bitcoin's Biggest Upgrade Yet? How FASB’s Fair Value Rules Could Transform Corporate Finance
Discover how Bitcoin is becoming a strategic reserve asset for cities, states, and nations. Learn about key legislative moves and the potential impact on global economic dynamics. Explore the benefits of Bitcoin as a hedge against financial instability and its role in shaping future economic power. Dive into the implications for policymakers and government officials.
Bitcoin as a Strategic Reserve: How Cities, States, and Nations Are Positioning Themselves for the Future of Money
Discover how Bitcoin is becoming a strategic reserve asset for cities, states, and nations. Learn about key legislative moves and the potential impact on global economic dynamics. Explore the benefits of Bitcoin as a hedge against financial instability and its role in shaping future economic power. Dive into the implications for policymakers and government officials.
Monthly Attest as an Industry Baseline - Your Path to a Conventional Proof of Reserves for Your Users
Conventional Proof of Reserves (PoR) reporting, conducted by independent certified public accountants, is a crucial method for verifying that reserve assets adequately cover outstanding token liabilities in the digital asset space. This process involves defining the scope, collecting and verifying data, constructing the PoR, engaging a crypto CPA firm, and transparently disclosing the attestation report to stakeholders. The Network Firm offers specialized attestation services for token issuers, leveraging their expertise in digital assets and advanced technology to provide customized, compliant, and reliable PoR reports.
Proof of Reserves Prep - 5 Easy Steps for Cross Functional Teams to Achieve PoR Reporting
This blog post outlines a comprehensive five-step process for preparing crypto Proof of Reserves (PoR) reporting, aimed at enhancing transparency and trust in the digital asset industry. The steps include general scoping, creating a customer liability extract, constructing a Merkle Tree, proving asset balances, and reporting and disclosure, providing a streamlined guide for cross-functional teams to efficiently and accurately complete PoR reporting. The post emphasizes the importance of regulatory compliance, data validation, and clear communication with stakeholders throughout the process.
Part 2: Does Your Block Need a SOC? - A Handy Guide to Understanding SOC 1 and SOC 2 Audits for Crypto Companies
This blog post explores the importance of SOC reporting and third-party assurance in the blockchain and cryptocurrency ecosystem. It discusses various use cases where SOC reports are essential, including crypto funds, asset-backed tokens, crypto accounting solutions, private blockchain platforms, node hosting and staking providers, and custodial wallet providers and exchanges. The author emphasizes that despite the trustless nature of blockchain technology, trusted advisors and intermediaries still play a crucial role in reinforcing user confidence and meeting regulatory requirements in the crypto industry.
Building a Financial Foundation for Crypto Startups: Key Takeaways from TNF Takes
Discover essential accounting and tax strategies for crypto startups from industry experts at a leading crypto accounting firm. Learn how to manage bookkeeping, reporting, compliance, and crypto-specific tax obligations to build a strong financial foundation and scale your blockchain business effectively.
Navigating the financial complexities of a crypto startup requires expertise in blockchain accounting, regulatory compliance, and tax management. In this blog post, experts from a top crypto accounting firm share actionable insights to help technical founders and blockchain businesses thrive. From bookkeeping basics and wallet hygiene to the latest fair value accounting rules and 409A valuations, this guide provides practical tips for startups at every stage. Learn how to avoid common pitfalls, streamline financial reporting, and meet crypto-specific tax obligations with confidence. If you're building in the blockchain space, these strategies are your blueprint for financial success.
Proof of Reserves vs. Financial Statement Audits: What Crypto Companies Need to Know
Discover the differences between Proof of Reserves (PoR) and Financial Statement Audits in the crypto industry. This in-depth guide explores how PoR offers real-time transparency using blockchain-based methods, while traditional audits provide comprehensive financial oversight. Learn the benefits, limitations, and how these approaches can complement each other to build trust in the cryptocurrency ecosystem. Perfect for crypto companies, investors, and regulators seeking clarity on financial transparency tools.
Part 1: Does Your Block Need a SOC? - A Handy Guide to Understanding SOC 1 and SOC 2 Audits for Crypto Companies
Explore the world of SOC reporting for blockchain and digital assets in this insightful series. Learn why your crypto business might need a SOC audit, understand the differences between SOC 1 and SOC 2 reports, and discover how to navigate the path from startup to SOC-compliant organization. Whether you're an early-stage company or an established player in the blockchain space, this guide provides valuable insights into third-party assurance and best practices for the crypto industry.
The Top 6 Issues in Preparing for Your Crypto Tax Compliance
Cryptocurrency tax compliance has become crucial as digital assets move mainstream, with six key issues to consider: identifying taxable events, ensuring wallet completeness, tracking transactions, addressing valuation challenges, handling forks and airdrops, and navigating international regulations. The IRS treats cryptocurrencies as property, making various transactions taxable, while new regulations require brokers to report digital asset sales starting 2026. Effective compliance strategies, including specialized software and expert guidance, are essential to mitigate financial risks and avoid penalties in this complex and evolving landscape.
How the IRS’s New Revenue Procedure 2024-28 Changes Crypto Tax Reporting
Stay ahead of the curve with the IRS's latest crypto tax guidelines! Revenue Procedure 2024-28 introduces a groundbreaking safe harbor rule for allocating the basis of digital assets, effective January 1, 2025. In this detailed breakdown, TNF experts Noah Buxton and Nick Ward discuss how these changes impact crypto companies and individual investors alike. Learn about new wallet-specific tracking requirements, compliance tips, and the interplay with recent broker-dealer regulations. Whether you're a seasoned crypto pro or navigating taxes for the first time, this guide will help you prepare, optimize your records, and avoid potential IRS penalties. Read on for expert insights, practical strategies, and everything you need to tackle crypto taxes like a pro!
2025 Crypto Predictions: Strategic Reserves, Stablecoins, & Regulation
Discover expert predictions for the crypto industry in 2025, including the potential for a U.S. Bitcoin Strategic Reserve, evolving regulatory frameworks, stablecoin growth, and the ongoing mystery of Satoshi Nakamoto. Explore insights from leading experts on how these trends could shape the future of cryptocurrency.
Tokenized Assets: The Opportunities for Auditors & Accountants
The rise of tokenized assets, such as stablecoins and tokenized real estate, is reshaping global finance. As these digital representations of real-world assets grow, they bring challenges in transparency and trust that auditors and accountants are uniquely positioned to solve. By leveraging blockchain technology for proof of reserves, on-chain reporting, and real-time auditing, financial professionals can provide the credibility and compliance needed in this evolving landscape. Dive into the future of finance and learn how tokenization opens new opportunities for transparency, trust, and innovation.
Your Quick Guide to Audit Readiness with Crypto on the Balance Sheet
Navigating crypto audits and proof of reserves reports is becoming increasingly crucial as the IRS enhances oversight on cryptocurrency transactions. This comprehensive guide provides best practices for crypto audit readiness, from selecting a qualified crypto audit company to managing costs and completing a successful audit. Learn essential steps for preparing financial records, establishing internal controls, and ensuring compliance with evolving regulations to maintain financial integrity in the dynamic world of cryptocurrency.
The Power of Proof of Reserves: Exchanges, Stablecoins, & ETFs
Proof of Reserves (PoR) is a transformative tool in the crypto ecosystem, ensuring transparency and trust across exchanges, stablecoins, ETFs, and tokenized assets. Originating after the 2014 Mt. Gox collapse, PoR addresses a fundamental question: Do platforms truly hold the assets they claim?
This concept involves two key components:
Proof of Assets: Demonstrating on-chain ownership of funds.
Proof of Liabilities: Ensuring customer liabilities match or exceed held assets.
With use cases ranging from verifying exchange reserves to backing stablecoins and tokenized real-world assets, PoR has become a cornerstone of crypto accountability. Its future promises innovations like on-chain automation, regulatory adoption, and cross-industry applications, making it critical for crypto companies to adopt PoR as a competitive advantage.
Forecasting and Budgeting in the World of Volatile Assets
Master cryptocurrency forecasting and budgeting with expert CFO strategies. This comprehensive guide explores best practices for crypto financial planning, including historical data analysis, flexible forecasting models, and leveraging blockchain analytics. Learn how to navigate the unique challenges of budgeting for crypto projects, mining operations, and exchange services. Discover practical tips for measuring budget performance and adapting to market volatility. Elevate your crypto finance management with insights from seasoned professionals at The Network Firm. Implement these strategies to drive financial stability and growth in the dynamic world of cryptocurrency.
The Crypto CFO's Checklist - The Big Issues in Crypto Accounting and Finance
Discover the top 10 critical issues in crypto accounting and finance with our comprehensive guide for CFOs and financial professionals. From strategic planning and financial reporting to crypto audit readiness and multi-jurisdictional operations, this article provides a detailed crypto accounting checklist to navigate the complexities of digital asset management. Learn essential best practices for investor reporting, treasury management, and crypto compensation to ensure compliance and drive business success in the dynamic world of cryptocurrency.