FVC2346. Cryptocurrencies and Crypto Companies: Regulatory Update and Valuation Challenges

Cryptocurrencies like Bitcoin and Ethereum enable people to make financial transactions without intermediaries like banks or financial institutions. New and emerging technologies, such as Simple Agreements for Future Tokens (SAFTs), have also grown in popularity and provide new tools for Crypto Companies and operators within the crypto space to invest and raise funds. In this session, we’ll examine some of the valuation, regulatory and market challenges facing cryptocurrencies and crypto companies (e.g. crypto miners and crypto exchanges), with a focus on the fair value standard of ASC 820/IFRS 13.

Learning Objectives:

• Identify and analyze potential regulatory issues affecting the valuation of digital assets arising out of the federal securities laws
• Evaluate current trends in the market for cryptocurrencies and crypto companies
• Apply appropriate discounts for lack of marketability to cryptocurrencies and other crypto assets
• Analyze and evaluate SAFTs and Joint Venture arrangements in crypto companies