Betsy Hart, a partner in RSM’s technical accounting consulting practice, discusses the key considerations that go into preparing for and responding to the evolving regulatory environment surrounding digital assets. For example, with the introduction of the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin No. 121 in March 2022, digital asset companies must think through the technical implications and determine whether they have the right policies in place. Businesses must also consider the operational side, including implementation and the audit process. From applying standards to recording assets accurately on balance sheets, to preparing for valuation challenges, digital asset companies must build a road map for both technical and operational considerations.