AICPA just dropped new stablecoin reporting criteria

To heck with loose change (and see ya later, pennies). Everyone’s into stablecoins now.

The AICPA is out with a new set of reporting criteria for stablecoins—a cryptocurrency pegged to fiat currencies like the dollar or other assets, and which is designed to remain stable in value. According to an AICPA news release, the update “captures the ongoing risks inherent in stablecoin operations.”

The new material, released on January 12, addresses “the need for well-designed and effectively operating controls,” and contains implementation guidance for both issuers and practitioners to assess “whether controls achieve their stated objectives.”

The idea behind the AICPA’s criteria “is to help stablecoin issuers consider the effective design of their controls—and help investors and regulators evaluate them,” PwC Partner Jeff Trent said in a Jan. 6 statement.

The release is the second part of the AICPA’s guidance on stablecoin reporting. Part one, which the AICPA published last year, “established a common framework for stablecoin issuers to present and disclose information at a specific point in time on outstanding stablecoins and the assets backing them,” according to the release.

“Last year saw significant momentum around stablecoin regulation, with policymakers increasingly focused on how these stablecoins are issued and how the reserves are managed,” Di Krupica, AICPA senior manager of assurance and advisory innovation, digital assets, said in the release. “The AICPA’s update responds to that environment by providing a clear, practical framework for evaluating whether the controls supporting stablecoin operations are designed and operating effectively.”

AICPA released the new material just days before the Senate Banking Committee was scheduled to vote on major cryptocurrency legislation, but South Carolina Sen. Tim Scott, who chairs the committee, postponed the vote after US crypto exchange Coinbase came out against it, Politico reported.

Digital asset companies have been pleading for the federal government to provide the industry with regulatory clarity.

Brian Moynihan, CEO of Bank of America, said this week that $6 trillion in bank deposits could move into stablecoins if Congress does not enact restrictions, The Block reported.