Welcome to the Enterprise Digital Asset Summit (EDAS) Highlight Series! Each week, we’re diving into one of the highest-rated sessions from this year’s conference.
Want to watch the full video? All session recordings are available for on-demand viewing and CPE credit at Bitwave University.
EDAS Highlight Series: Session #3
We all know the regulatory landscape for digital assets is… evolving. But, finance pros need to understand how this evolution impacts businesses of various sizes – from growth-stage startups to massive, IPO-scale enterprises. This special session welcomes three leading digital asset finance practitioners to share valuable best practices and insight from the front lines of their practice.
The session features Josh Santos, RIA Controller (Coinbase), Lisa Holloway, Co-Founder and COO (Fuel 3), and David Thomson, CFO and Web3 Practice Lead (Attivo). Joe Dillon, Director of Customer Success (Bitwave) is the panel moderator.
Key Difference: Internal Accounting vs Client Services
The panelists shared their thoughts on some of the core differences between working internally (like at Coinabse) versus working on external client accounts:
- INTERNAL (ENTERPRISE): For internal accounting teams at large-scale enterprises, the “cost of compliance” with regulatory guidance (like SAB 121 in the US) can be incredibly high – and some organizations question how much benefit these rules are delivering
- INTERNAL (STARTUP): SAB 121 is less of a concern for internal accounting teams at early-stage startup organizations. Since these companies are so new, they are more focused on building foundational best practices for regulatory compliance – like ensuring that smart contracts do not raise immediate regulatory concerns.
- CLIENT SERVICES: For client service organizations (like Attivo), security concerns a primary driver of operational choices – like avoiding custody of third-party assets and having strict protocols to ensure wallets are never commingled.
“We’re here to do a job; we want to keep clean books and records and be the most trusted company in the space….” - Josh Santos, Coinbase
Putting Regulation In Practice
In some cases, financial teams are tasked with (not only) staying current with evolving regulations – but also creating and implementing a practical roadmap for applying that guidance.
“You have to know the rules, understand them, and translate them into something practical.” - Joe Dillon, Bitwave
- Managing expectations with customers and internal teams is critical – especially when working with transactions that add complexity to the accounting process.
- For example, some blockchains make it incredibly difficult to export and download transaction information – compared to the simplicity of tracking USDC on Coinbase. Being transparent with your stakeholders about those challenges is essential at the start.
- Companies should be mindful of the accounting costs associated with processing a high volume of low-value transactions. Sometimes, it may be more efficient to expense these costs in aggregate rather than tracking each transaction individually.
- When launching new on-chain products, companies should involve accounting teams early to ensure that appropriate accounting procedures are proactively in place. This helps avoid complications and ensures a smoother accounting process.
Importance of Communication & Collaboration
One of the most important things you can do to drive success as an accounting practitioner is to develop strong relationships.
Finance leaders should approach conversations with Engineering, Product, and Operations teams with a shared goal – ensuring the long-term health and success of the company.
“We’re successful when they’re successful” - David Thomson, Attivo
Open communication between accounting/finance teams and other departments is crucial for companies to be prepared for audits and other critical financial events.
Want more? Watch the full session recording on Bitwave's online certification platform, Bitwave University!
Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as tax, accounting, or financial advice. The content is not intended to address the specific needs of any individual or organization, and readers are encouraged to consult with a qualified tax, accounting, or financial professional before making any decisions based on the information provided. The author and the publisher of this blog post disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use or application of any of the contents herein.
