SoDA: Essential Guide for Accountants in Crypto

Digital assets are rapidly changing the way financial reporting works. Traditional frameworks like GAAP often fall short of providing the clarity needed for blockchain-based assets, leaving CFOs and accountants grappling with incomplete balance sheets.

Enter the Statement of Digital Assets (SoDA), a structured framework designed to bridge these gaps. By organizing data into Wallet/Asset Pairs, tracking liquidity and restrictions, and aligning with regulatory guidelines like FASB ASU 2023-08, SoDA offers a clear path forward.

Sign up here to watch the full recording of this talk and stay informed on the latest developments in digital asset reporting and compliance under US GAAP

The Challenges of Digital Asset Reporting
How SoDA Bridges the GAAP
Why Accountants Need SoDA Now
Steps to Adopt SoDA
FAQs About SoDA
Conclusion
About Speakers
Watch more about crypto accounting.

The Challenges of Digital Asset Reporting

Managing digital assets presents unique challenges for finance teams. Traditional reporting systems often fail to address:

Differentiating liquid assets from locked or restricted tokens.
Valuing assets at both book and fair market values.
Accounting for emerging trends like tokenized real-world assets (RWAs).

“SoDA is terrific for telling the story of a point in time, but its real value comes from showing a token roll-forward at the wallet-asset level.” — Sam Leichman

These gaps create inefficiencies and risks, making it harder for organizations to deliver accurate and trustworthy financial statements.

How SoDA Bridges the GAAP

SoDA addresses these issues by introducing a structured approach to reporting digital assets.

Wallet/Asset Pairs: SoDA organizes assets at the wallet level, allowing clear visibility into their role (e.g., operational, restricted, or staked).
Dual Valuation Framework: By including both book value and fair market value, SoDA provides a comprehensive view of a company’s liquidity and unrealized gains or losses.
Alignment with FASB ASU 2023-08: SoDA complements regulatory guidelines, adding clarity where existing frameworks fall short.

“SoDA isn’t just looking at today’s challenges but anticipating tomorrow’s edge cases—like tokenized real-world assets or programmable tokens.” — David Byrd

For a detailed explanation of how SoDA organizes Wallet/Asset Pairs and their roles, watch this highlight from the webinar featuring Sam Leichman

Why Accountants Need SoDA Now

Adopting SoDA isn’t just about compliance; it’s about building trust and preparing for the future. Here’s why finance teams should act now:

Transparency: Ensure stakeholders understand the true state of your balance sheet.
Efficiency: Reduce manual processes by integrating subledger systems that track blockchain activity seamlessly.
Future-Proofing: Prepare for emerging trends like RWAs and advanced blockchain integrations.

To learn more about the framework’s applications, check out our webinar replay.

Hear David Byrd explain how SoDA aligns with FASB ASU 2023-08, providing a clear framework for compliance and financial clarity.

Steps to Adopt SoDA

Implementing SoDA in your organization can be broken down into these steps:

Map Your Assets: Identify Wallet/Asset Pairs and assign appropriate roles.
Leverage Technology: Use tools like Cryptoworth to automate asset tracking and reporting.
Train Your Team: Ensure your finance and accounting teams know SoDA’s principles.
Endorse SoDA: Advocate for its adoption within your network to encourage industry-wide standardization.

“SoDA provides the backup for those numbers—showing what’s on the balance sheet and what’s sitting behind it.” — Sam Leichman

Watch the full recording for more insights on overcoming the technical hurdles of aligning blockchain assets with modern financial reporting standards.

In this clip, David Byrd and Richard Pasquin discuss the evolving challenges in digital asset reporting and how SoDA is preparing organizations for the future.

FAQs About SoDA

How does SoDA improve compliance with FASB ASU 2023-08?
By organizing data into Wallet/Asset Pairs, SoDA provides a detailed view of digital asset valuations and aligns with fair market value reporting standards.
Can SoDA handle tokenized real-world assets?
Yes, SoDA is designed to evolve with emerging asset classes like tokenized RWAs and programmable tokens.
Is SoDA difficult to implement?
Not at all. With the right tools and guidance, SoDA integrates seamlessly into existing accounting workflows.

Conclusion

SoDA Finance is more than a framework—it’s a solution to the complexities of digital asset reporting. By adopting SoDA, organizations can ensure transparency, streamline their processes, and prepare for the future of blockchain-enabled finance.

Don’t miss the chance to hear directly from industry leaders. Access our webinar replay to learn more about how SoDA is shaping the future of digital asset reporting.

About Speakers

Sam Leichman

Samuel Leichman is the Blockchain Practice Lead at Propeller Industries. With extensive experience in operational accounting for blockchain-based businesses, Sam has been instrumental in implementing SoDA to improve transparency and compliance in digital asset reporting. He focuses on bridging the gap between blockchain data and traditional GAAP principles, ensuring CFOs have a clear and accurate view of their financial statements.

David Byrd

David Byrd is a Partner at EY, where he leads the Digital Asset Research Center. His work focuses on helping businesses navigate evolving regulatory landscapes. He has participated in various discussions, providing insights on topics such as crypto and digital asset fundamentals, decentralized finance (DeFi), and decentralized autonomous organizations (DAOs). David’s expertise lies in aligning emerging technologies with best practices to ensure businesses meet their compliance obligations while preparing for future challenges like tokenized assets and programmable tokens.

Richard Pasquin

Richard Pasquin is a Director at Cryptoworth, specializing in integrating technology solutions with financial reporting. He plays a key role in enabling businesses to implement SoDA through subledger platforms, automating complex processes, and improving data accuracy. Richard’s work ensures that both startups and established institutions can adopt SoDA seamlessly to enhance their reporting workflows.