WEBVTT 1 00:00:00.200 --> 00:00:05.480 Anytime you're holding what this guidance defines as a crypto asset, 2 00:00:06.120 --> 00:00:10.320 So this excludes NFTs. I will caveat with that for 3 00:00:10.400 --> 00:00:14.919 any crypto assets held on the balance sheet recorded at 4 00:00:14.960 --> 00:00:19.239 fair value. So as of the date of my you know, 5 00:00:19.879 --> 00:00:22.760 the end of the quarter, I should say what is 6 00:00:22.800 --> 00:00:26.280 the price and what is the quantity of my bitcoin held, 7 00:00:26.719 --> 00:00:28.559 and that is the number that I will record it 8 00:00:28.559 --> 00:00:32.840 on my balance sheet. 9 00:00:36.119 --> 00:00:38.479 This content is brought to you by Uphold, which is 10 00:00:38.520 --> 00:00:41.399 one of the top crypto platforms out there which allows 11 00:00:41.439 --> 00:00:44.439 you to easily buy, sell, trade bitcoin and the top 12 00:00:44.479 --> 00:00:47.399 all coins in the market. 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Welcome into the Thinking Crypto Podcast. 30 00:01:44.319 --> 00:01:46.799 I'm your host, Tony Edward and with me is Reagan Cook, 31 00:01:46.840 --> 00:01:50.719 who is the accounting subject matter expert at tax Bit. Reagan. 32 00:01:50.760 --> 00:01:51.680 Great to have you back on. 33 00:01:51.959 --> 00:01:54.640 Yeah, thanks for having me, Reagan. 34 00:01:55.040 --> 00:01:57.959 I have interviewed folks on tax from taxbit over the years, 35 00:01:58.079 --> 00:02:00.280 and we've talked a lot about what tax that has 36 00:02:00.319 --> 00:02:03.680 been doing to help different companies and even retail investors 37 00:02:03.680 --> 00:02:06.400 in the crypto industry. So definitely want to hear the 38 00:02:06.480 --> 00:02:09.319 latest updates, but also get your take on things like 39 00:02:09.759 --> 00:02:13.199 what the IRS is doing and the FASTB rules and 40 00:02:13.240 --> 00:02:17.000 so forth around companies holding bitcoin and so forth. But 41 00:02:17.039 --> 00:02:18.919 let's start with your background. Where are you from and 42 00:02:19.120 --> 00:02:20.319 what's your professional background? 43 00:02:21.439 --> 00:02:25.560 Yeah, thanks for asking I'm from Indiana. I grew up 44 00:02:25.560 --> 00:02:31.039 a Hoosier, went to Indiana University. I'm a CPA by trade. 45 00:02:31.560 --> 00:02:35.199 I started my career at Deloit, spent some time at 46 00:02:35.199 --> 00:02:39.719 a large public company thereafter, doing all things internal and 47 00:02:39.759 --> 00:02:44.479 external reporting. I had a personal interest in crypto and 48 00:02:45.039 --> 00:02:49.039 moved out west and found tech Bit, which was a 49 00:02:49.080 --> 00:02:55.520 perfect combination of that professional background in financial reporting and CPA, 50 00:02:56.039 --> 00:03:00.680 but also paired with personal interest of crypto and blockchain technology. 51 00:03:01.639 --> 00:03:04.120 So what sparked your personal interest? What was your first 52 00:03:04.159 --> 00:03:05.840 encounter and what was your aha moment? 53 00:03:07.560 --> 00:03:12.639 My aha moment was really understanding and watching a bunch 54 00:03:12.719 --> 00:03:17.599 of YouTube about blockchain technology. This had to be about 55 00:03:17.639 --> 00:03:20.879 ten years ago. Actually, I started watching a bunch of 56 00:03:20.919 --> 00:03:27.840 YouTube reading about blockchain technology, understanding some of the efficiencies. 57 00:03:27.120 --> 00:03:30.719 And utility there. So that was actually the inception of 58 00:03:30.759 --> 00:03:31.439 the interest. 59 00:03:31.960 --> 00:03:35.800 And then you know, of course there was a ton 60 00:03:35.840 --> 00:03:40.840 of a ton of activity going on with bitcoin. I 61 00:03:40.879 --> 00:03:46.080 started hearing about people mining bitcoin. I'm also a freelance artist, 62 00:03:46.280 --> 00:03:50.520 and so the NFT space was particularly interesting for me, 63 00:03:51.319 --> 00:03:55.240 and you know, the thought of the use cases just 64 00:03:56.439 --> 00:04:00.840 I it piqued my interest and it's cool, it's exciting 65 00:04:00.879 --> 00:04:03.879 to see how the industry has evolved since then, and 66 00:04:03.919 --> 00:04:07.360 it will continue to evolve. And it's just fascinating to 67 00:04:07.400 --> 00:04:12.439 see companies like PayPal and Visa and even Nike a 68 00:04:12.479 --> 00:04:16.800 few years back exploring the NFT space. You know, it's 69 00:04:16.959 --> 00:04:20.160 evolving and it will continue to evolve, but it's just 70 00:04:20.199 --> 00:04:23.800 fascinating to see these use cases start to actually play out. 71 00:04:24.279 --> 00:04:28.399 So, yeah, absolutely, and what many will call now Web three, 72 00:04:28.519 --> 00:04:32.639 the transition from Web one to two point zero course, 73 00:04:32.720 --> 00:04:36.680 and now an entirely different world where users kind of 74 00:04:36.720 --> 00:04:42.680 have more ownership and the ability to do a lot more. Now, 75 00:04:42.879 --> 00:04:44.879 for those who may not know about tax bit, give 76 00:04:44.959 --> 00:04:46.759 us an overview of your services. 77 00:04:47.680 --> 00:04:48.120 Yeah. 78 00:04:48.600 --> 00:04:53.800 So Taxbit's mission is to enable the digital economy. And 79 00:04:53.879 --> 00:04:56.759 that's a broad statement. But I start there with that 80 00:04:56.839 --> 00:05:02.120 broad statement because tax bit has built, you know, modernized 81 00:05:02.160 --> 00:05:08.959 solutions for tax accounting and also public sector So if 82 00:05:09.079 --> 00:05:11.199 let's drill into each of those really quickly. 83 00:05:11.240 --> 00:05:12.480 Here, accounting. 84 00:05:12.560 --> 00:05:17.800 When I say accounting, I'm referring to accounting and financial 85 00:05:17.920 --> 00:05:22.199 reporting and all of the tracking that needs to happen 86 00:05:22.439 --> 00:05:27.399 for the individual transactions to do that consolidated financial reporting 87 00:05:27.759 --> 00:05:31.519 whether you're a public or a private company, and along 88 00:05:31.560 --> 00:05:35.519 with that is the concept of journal entries. So if 89 00:05:35.519 --> 00:05:40.639 you think about legacy ERP solutions, you know, NetSuite, quick books, 90 00:05:40.839 --> 00:05:42.839 some of these solutions that have been around for a 91 00:05:42.879 --> 00:05:47.199 long time that most companies use regardless of their size, 92 00:05:47.759 --> 00:05:52.839 they don't traditional or they don't historically support digital assets, 93 00:05:53.000 --> 00:05:57.519 and so there's a need for this external solution because 94 00:05:57.560 --> 00:06:01.240 it's putting accountants and finance x or it's back in 95 00:06:01.360 --> 00:06:05.800 spreadsheets completely. So these experts in their roles as a 96 00:06:05.839 --> 00:06:09.759 controller or a CFO or you know, their respective teams, 97 00:06:10.040 --> 00:06:13.759 they've taken steps back and are now doing everything in spreadsheets. 98 00:06:13.959 --> 00:06:17.160 And so there's a need for you know, either the 99 00:06:17.240 --> 00:06:22.639 existing ERP solutions or solutions like ours to enable companies 100 00:06:22.680 --> 00:06:27.360 to continue to explore the digital asset space and be 101 00:06:27.399 --> 00:06:30.959 efficient while doing it from a back office perspective. And 102 00:06:31.000 --> 00:06:33.959 that also relates to our tax solutions. 103 00:06:34.040 --> 00:06:35.160 So if you think. 104 00:06:34.959 --> 00:06:39.680 About the recent you know, regulation clarity that we're seeing, 105 00:06:40.160 --> 00:06:44.040 it's the same concept. There's a ton of underlying transaction 106 00:06:44.199 --> 00:06:47.680 data that companies need to track and record in a 107 00:06:47.720 --> 00:06:51.959 timely manner to comply with this regulatory clarity that we're 108 00:06:52.000 --> 00:06:56.360 starting just now starting to see. And then Finally, we 109 00:06:56.480 --> 00:06:59.399 have a public sector side of the house, so we 110 00:06:59.519 --> 00:07:04.439 build tos for government agencies to do the same exact thing. 111 00:07:04.639 --> 00:07:11.759 So we're enabling you know, whatever groups of people, enterprises, 112 00:07:11.959 --> 00:07:17.560 government agencies to do their tax in accounting and whatever 113 00:07:17.600 --> 00:07:20.959 their respective reporting requirements are in a more you know, 114 00:07:21.040 --> 00:07:21.959 efficient manner. 115 00:07:23.079 --> 00:07:25.680 So speaking of government agencies, of course, the i r 116 00:07:25.839 --> 00:07:31.040 S is the agency where everybody's focused on and what 117 00:07:31.199 --> 00:07:34.639 activities they have going on when initiatives. How have you 118 00:07:34.720 --> 00:07:39.040 been engaging with them and are there any interesting takeaways? 119 00:07:40.879 --> 00:07:43.040 Yeah, in terms of the I r S. 120 00:07:43.240 --> 00:07:47.600 So i'll speak high level here, we've been you know, 121 00:07:47.920 --> 00:07:51.399 we have been working close with the i r S. 122 00:07:52.399 --> 00:07:55.240 We have a contract with the i r S. We 123 00:07:55.279 --> 00:07:57.560 work closely with the i r S. We have built 124 00:07:57.560 --> 00:08:03.199 solutions for different government agencies. They are building out their team. 125 00:08:03.720 --> 00:08:07.680 This has become public information. You know, we have an 126 00:08:07.759 --> 00:08:11.680 individual that came from the IRS. The person that hired 127 00:08:11.720 --> 00:08:15.759 me at tax Bit recently joined the IRS. So we 128 00:08:15.959 --> 00:08:18.720 are you know, we work closely with them in the 129 00:08:18.800 --> 00:08:23.839 sense that more from a thought leadership perspective, and we're 130 00:08:23.959 --> 00:08:29.439 enabling the IRS and other government agencies with solutions so 131 00:08:29.480 --> 00:08:33.240 that they can understand the space better and make informed 132 00:08:33.240 --> 00:08:36.039 decisions for the broader population. 133 00:08:36.960 --> 00:08:38.919 Yeah. That's really great because I know there's been a 134 00:08:39.000 --> 00:08:41.960 lot of rumblings in the industry from people saying these 135 00:08:42.000 --> 00:08:45.399 government agencies don't get it right, and it's any education 136 00:08:45.480 --> 00:08:47.759 and advocacy. So it's great that you guys are engaging 137 00:08:47.799 --> 00:08:51.480 and helping them along the way because there's been things 138 00:08:51.559 --> 00:08:56.600 like the ten ninety nine DA form I believe issued 139 00:08:56.600 --> 00:08:59.879 by the IRS, with the industry saying hey, it's not dual. 140 00:09:00.960 --> 00:09:01.159 Yeah. 141 00:09:01.639 --> 00:09:04.600 Yeah, So any thoughts on that form and how the 142 00:09:04.639 --> 00:09:06.039 industry has been engaging. 143 00:09:07.000 --> 00:09:10.679 No, I mean, whether it's that form or you know, 144 00:09:11.000 --> 00:09:16.120 an accounting topic or other forms that have been discussed, 145 00:09:16.320 --> 00:09:22.679 it's it's a matter of educating, educating the decision makers 146 00:09:23.000 --> 00:09:28.960 and helping them understand so that we can create realistic 147 00:09:29.440 --> 00:09:35.240 and actually useful requirements for companies and individuals. So that's 148 00:09:35.279 --> 00:09:40.279 where I do believe there's been a ton of interesting conversation, 149 00:09:40.759 --> 00:09:45.759 and you know, I'm extremely passionate about what tax bit 150 00:09:45.879 --> 00:09:49.080 is doing because I literally I was on a call 151 00:09:49.279 --> 00:09:54.000 yesterday where we were having conversations with someone at a 152 00:09:54.120 --> 00:09:58.639 large exchange and it was simply a thought leadership conversation 153 00:09:59.399 --> 00:10:04.679 that happened and after the bitcoint Nashville conference. And it's 154 00:10:04.759 --> 00:10:10.600 funny they were referring to this conversation as extra curricular work. 155 00:10:10.639 --> 00:10:12.840 You know, you have your your work that you're doing 156 00:10:12.960 --> 00:10:16.320 at your respective company, and it's really cool to see 157 00:10:16.320 --> 00:10:20.480 all these individuals come together outside of their you know, 158 00:10:20.799 --> 00:10:25.720 direct roles and responsibilities at their companies, coming together and 159 00:10:25.840 --> 00:10:28.840 you know, partnering and wanting to learn with. 160 00:10:28.840 --> 00:10:32.559 Each other about what should. 161 00:10:32.240 --> 00:10:36.080 The regulation be, what should the guidance be for accounting, 162 00:10:36.559 --> 00:10:43.240 what is realistic for individual taxpayers and also companies wanting 163 00:10:43.320 --> 00:10:44.840 to explore and grow. 164 00:10:44.679 --> 00:10:46.080 In the digital asset space. 165 00:10:46.200 --> 00:10:50.759 So we are so actively involved in these conversations on 166 00:10:50.799 --> 00:10:55.000 a weekly basis, and that's certainly one element of what 167 00:10:55.519 --> 00:10:59.639 keeps me extremely energized and also excited about the future 168 00:10:59.679 --> 00:11:00.440 for this space. 169 00:11:01.519 --> 00:11:05.159 Yeah. Absolutely, and I think as with you, you know, 170 00:11:05.240 --> 00:11:08.399 you guys doing your advocacy and education the industry, continuing 171 00:11:08.440 --> 00:11:11.159 to give feedback. We can get get this right, and 172 00:11:11.200 --> 00:11:14.080 the government's different government agencies can get these things right. 173 00:11:15.039 --> 00:11:17.639 I did want to ask you about the FASTB rules, 174 00:11:18.159 --> 00:11:21.840 which are enforceable starting December thirty, first, twenty twenty four, 175 00:11:21.879 --> 00:11:24.840 and this is part of a bigger conversation of companies 176 00:11:24.840 --> 00:11:28.440 adding bitcoin to their treasury, you know, and using it 177 00:11:28.480 --> 00:11:31.720 as a treasury reserve asset. Tell us about this rule, 178 00:11:32.600 --> 00:11:34.879 and I believe from what I've read, but you can 179 00:11:34.919 --> 00:11:37.639 correct me if I'm wrong that this is positive because 180 00:11:37.639 --> 00:11:41.200 it allows companies to easily at biitcoin to their balance sheet. 181 00:11:42.440 --> 00:11:43.799 Yeah. Absolutely. 182 00:11:44.399 --> 00:11:46.440 If you had asked me three years ago if I 183 00:11:46.480 --> 00:11:49.879 would get fired up about accounting guidance, I would have 184 00:11:49.960 --> 00:11:53.480 said no. But there is one thing that I do 185 00:11:53.559 --> 00:11:56.639 get very excited about in the realm of accounting guidance, 186 00:11:56.720 --> 00:12:01.399 and it is this specific topic because previous to this 187 00:12:01.519 --> 00:12:07.039 accounting guidance update, the guidance and requirement for companies. 188 00:12:08.440 --> 00:12:12.279 I'll just simplify here the previous guidance. Here. If you were. 189 00:12:12.200 --> 00:12:15.679 Holding bitcoin and you bought it for fifty thousand dollars, 190 00:12:15.759 --> 00:12:20.320 let's say, and the price dropped to twenty thousand, and 191 00:12:20.360 --> 00:12:23.399 then it went back up to sixty thousand, you were 192 00:12:23.519 --> 00:12:28.240 required as a company to record that initial at any 193 00:12:28.559 --> 00:12:32.759 loss that occurred. So anytime the price dropped below that 194 00:12:32.840 --> 00:12:37.879 initial cost basis value, the company was required to record 195 00:12:38.000 --> 00:12:42.039 an impairment loss and then was not able to record 196 00:12:42.120 --> 00:12:46.039 that increase in value at any later date until the 197 00:12:46.080 --> 00:12:50.399 bitcoin was actually disposed of. And so if you were 198 00:12:50.440 --> 00:12:54.759 to look at micro Strategies balance sheet, for example, and 199 00:12:54.840 --> 00:13:00.159 their earnings, you would see pretty sizable impairment losses. So 200 00:13:00.559 --> 00:13:07.120 this was actually not accurate accurately representing the economics of 201 00:13:07.200 --> 00:13:11.600 the asset held at that time, and it's not there 202 00:13:11.720 --> 00:13:16.279 shouldn't be incentive to sell the asset to actually record 203 00:13:16.360 --> 00:13:20.559 and realize that increase in value, So it's not accurately. 204 00:13:20.600 --> 00:13:26.559 It was not previously accurately reflecting what the economics were 205 00:13:26.559 --> 00:13:29.279 and what the true value was. And so now the 206 00:13:29.360 --> 00:13:35.039 guidance is okay anytime you're holding what this guidance defines 207 00:13:35.200 --> 00:13:36.879 as a crypto asset. 208 00:13:37.559 --> 00:13:39.440 So this excludes NFTs. 209 00:13:39.639 --> 00:13:43.399 I will caveat with that for any crypto assets held 210 00:13:44.039 --> 00:13:48.159 on the balance sheet recorded at fair value. So as 211 00:13:48.200 --> 00:13:51.840 of the date of my you know, the end of 212 00:13:51.879 --> 00:13:55.200 the quarter, I should say what is the price and 213 00:13:55.279 --> 00:13:58.399 what is the quantity of my bitcoin held, and that 214 00:13:58.519 --> 00:14:00.960 is the number that I will record my balance sheet. 215 00:14:01.440 --> 00:14:06.200 Any change in value does go through earning still, but 216 00:14:06.440 --> 00:14:10.200 in an appreciating market or you know, whatever the price 217 00:14:10.279 --> 00:14:15.039 volatility is the company is you know, now able to 218 00:14:15.080 --> 00:14:19.600 take ownership and accurately represent what the economics are of 219 00:14:19.679 --> 00:14:20.480 the assets held. 220 00:14:20.679 --> 00:14:22.679 So it is intended to. 221 00:14:22.600 --> 00:14:29.320 Be a lower cost, lower complexity movement for the industry, 222 00:14:29.399 --> 00:14:35.000 which is really exciting because I think it is beneficial 223 00:14:35.159 --> 00:14:39.840 to the users of the financial statements and also the 224 00:14:40.240 --> 00:14:43.679 team doing the back office work. So it's making it 225 00:14:43.919 --> 00:14:48.519 This is the type of guidance from my perspective, that 226 00:14:48.639 --> 00:14:52.600 is actually enabling companies to continue to explore and grow 227 00:14:52.639 --> 00:14:53.240 in the space. 228 00:14:54.159 --> 00:14:56.840 Yeah, that's really great and the fact that it's making 229 00:14:56.960 --> 00:15:00.360 less complex easier for both sides. As you mentioned, and 230 00:15:01.200 --> 00:15:04.279 I know from the macro there's a lot of companies 231 00:15:04.320 --> 00:15:08.639 looking to do this because of inflation, because of other 232 00:15:08.919 --> 00:15:12.120 assets not performing as well, and bitcoin has been like 233 00:15:12.159 --> 00:15:14.720 the top performing asset over the past I leave ten 234 00:15:14.759 --> 00:15:18.279 to eleven years. So it seems to be like a 235 00:15:18.720 --> 00:15:21.720 global trend of companies adding bigcoin chair balance ing now 236 00:15:21.720 --> 00:15:24.919 because we're talking just the United States, but for us 237 00:15:24.960 --> 00:15:28.120 to remain competitive, it's good that these rules are you know, 238 00:15:28.519 --> 00:15:29.320 making it easier. 239 00:15:30.440 --> 00:15:30.879 Yeah. 240 00:15:30.919 --> 00:15:33.639 Absolutely, And I mean if you even if you think 241 00:15:33.679 --> 00:15:37.600 about the guidance from a global perspective. 242 00:15:38.200 --> 00:15:40.679 We are now more in line. 243 00:15:40.440 --> 00:15:44.720 With what is acceptable you know in Europe and companies 244 00:15:45.159 --> 00:15:46.960 following IFRS guidance. 245 00:15:47.080 --> 00:15:49.879 So this is really exciting for the space. 246 00:15:50.279 --> 00:15:56.039 And you know, not only is it saving companies time, ideally, 247 00:15:56.440 --> 00:16:02.240 it's it's let's say you've never touched crypto, you don't 248 00:16:02.320 --> 00:16:07.919 understand it, and you also don't understand accounting specifically. You know, 249 00:16:08.399 --> 00:16:11.759 there's a reason that we can go and trade stocks 250 00:16:11.799 --> 00:16:15.039 and look at a ten K if we want to 251 00:16:15.039 --> 00:16:20.480 to understand the financial health of a company without understanding 252 00:16:21.159 --> 00:16:25.039 the you know that that accounting guidance might not be 253 00:16:25.200 --> 00:16:30.360 the most up to date or you know, accurately representing 254 00:16:30.519 --> 00:16:34.360 what the activity is. It might signal something that is 255 00:16:34.480 --> 00:16:39.799 not necessarily fair, if you will, to the company holding 256 00:16:39.799 --> 00:16:44.360 that asset. So this is really encouraging and I think 257 00:16:44.399 --> 00:16:48.960 over time will continue to see more and more clarity, 258 00:16:49.120 --> 00:16:55.320 hopefully based off of informed input from industry thought leaders. 259 00:16:55.559 --> 00:16:58.320 So I think this is all really really exciting stuff. 260 00:16:59.279 --> 00:17:00.919 I don't know if you can answer is, but I'm 261 00:17:01.000 --> 00:17:06.160 curious as to have you seen more companies and corporates 262 00:17:06.200 --> 00:17:10.039 coming to you guys about these things. Given that bitcoin 263 00:17:10.079 --> 00:17:13.400 and crypto have gone mainstream that you got the ETF launches, 264 00:17:13.759 --> 00:17:19.599 you've got regulations kind of halfway through the whole legislative process, 265 00:17:19.640 --> 00:17:21.319 right got out of the FIT twenty one, get out 266 00:17:21.359 --> 00:17:23.799 of the house. Are you guys seeing more demand and 267 00:17:23.799 --> 00:17:26.079 more business because of these things? 268 00:17:27.440 --> 00:17:32.680 Yeah, I would say we're there's a new energy in 269 00:17:33.480 --> 00:17:37.720 the space right now, and we're even seeing more demand 270 00:17:37.920 --> 00:17:42.119 from companies that you know, have been in the space 271 00:17:42.160 --> 00:17:45.519 for a while, and they're coming to us and they're saying, 272 00:17:46.079 --> 00:17:49.039 you know, you've been on top of this thought leadership 273 00:17:49.079 --> 00:17:54.880 element and educational you know, perspective coming from an educational lens. 274 00:17:54.920 --> 00:17:57.000 I think has gone a long way for us because 275 00:17:57.480 --> 00:18:01.160 we've you know, we've stayed engaged and on top of 276 00:18:01.240 --> 00:18:05.319 these new regulations and this new guidance, and we've we've 277 00:18:05.359 --> 00:18:09.200 been building for this for a while, anticipating a lot 278 00:18:09.200 --> 00:18:13.160 of these changes because we genuinely want you know, we 279 00:18:13.200 --> 00:18:17.279 want to enable companies, and so it's it's been energizing 280 00:18:17.319 --> 00:18:20.400 to see companies come to us saying, you know, we've 281 00:18:20.400 --> 00:18:24.799 seen your thought leadership, We've seen you know, this educational 282 00:18:24.839 --> 00:18:28.200 content that you're putting out. We want to understand how 283 00:18:28.559 --> 00:18:33.240 your solutions work now and so it is while we've 284 00:18:33.279 --> 00:18:38.200 seen more demand, we're also continuing to have conversations with 285 00:18:38.640 --> 00:18:43.319 you know, large institutions around Okay, you know, we're thinking. 286 00:18:43.000 --> 00:18:46.400 About these projects. How how can we build with you 287 00:18:46.839 --> 00:18:48.720 to make sure we're doing this the right way. We 288 00:18:48.759 --> 00:18:50.319 want to we want to have. 289 00:18:50.119 --> 00:18:54.440 The right the pipes in place before we take off, 290 00:18:54.480 --> 00:18:56.960 and that that's also been really exciting to see. 291 00:18:57.279 --> 00:19:03.160 So key question here does it matter if a company 292 00:19:03.200 --> 00:19:06.519 adds bitcoin directly to their balance sheet versus if they 293 00:19:06.640 --> 00:19:09.720 buy the ETF. Let's say they buy black Rocks ETF 294 00:19:10.400 --> 00:19:13.759 and I don't know, I don't know the intricacies of 295 00:19:13.440 --> 00:19:16.720 these things and how it all works, but does that matter? 296 00:19:18.160 --> 00:19:25.960 Yeah, So anyone, any company holding crypto assets will then record. 297 00:19:25.400 --> 00:19:28.839 That asset held on their balance sheet. So it's the 298 00:19:28.920 --> 00:19:29.880 simple answer is. 299 00:19:29.880 --> 00:19:34.400 Yes, got it. And what's on your roadmap for twenty 300 00:19:34.440 --> 00:19:36.319 twenty four or the remainder of twenty twenty four? 301 00:19:37.599 --> 00:19:41.799 Yeah, in terms of roadmap, so two things I'll say. One, 302 00:19:42.000 --> 00:19:48.000 we are expanding from a global perspective. We're growing into 303 00:19:48.799 --> 00:19:54.599 you know, multiple different areas of the world, specifically Europe, Dubai, 304 00:19:54.839 --> 00:20:00.960 Latin America. There's an initiative to expand globally on all fronts, 305 00:20:00.960 --> 00:20:06.440 So not just accounting. I did mention you know, IFRS 306 00:20:06.519 --> 00:20:10.960 and GAP aligning more closely now, but from you know, 307 00:20:11.039 --> 00:20:15.599 from a tax form perspective and just from a general 308 00:20:15.640 --> 00:20:20.799 information reporting perspective. What's happening at tax Bit. And the 309 00:20:21.880 --> 00:20:26.200 thing that keeps me extremely energized about what the company 310 00:20:26.839 --> 00:20:31.400 has built and can build is once you once once 311 00:20:31.480 --> 00:20:36.319 this company tax bit from a software from a solution 312 00:20:36.559 --> 00:20:42.559 provider perspective, once we have the underlying data and quality 313 00:20:42.839 --> 00:20:48.200 of calculations for those gay losses, we can put together 314 00:20:48.400 --> 00:20:54.279 any combination of form or report, and we can expand 315 00:20:54.559 --> 00:20:58.359 globally from there and also continue to iterate as we 316 00:20:58.440 --> 00:21:04.039 see more regulatory clarity. So number one is we're expanding internationally. 317 00:21:04.160 --> 00:21:06.640 And number two what I was alluding to there is 318 00:21:07.160 --> 00:21:11.799 as we continue to see clarity, whether it's the fast 319 00:21:11.920 --> 00:21:16.759 be for you know, accounting in the US, or there's 320 00:21:17.359 --> 00:21:23.559 changes to the international accounting guidance and that landscape, or 321 00:21:24.079 --> 00:21:30.119 there's updated information reporting requirements for this country, we are 322 00:21:30.240 --> 00:21:33.720 able to build to those things because we have the 323 00:21:34.200 --> 00:21:39.759 underlying calculation engine, and we also we have the infrastructure 324 00:21:40.160 --> 00:21:44.200 as a team to continue to build you know, we 325 00:21:44.359 --> 00:21:48.160 raised over two hundred million dollars a handful of years ago, 326 00:21:48.319 --> 00:21:51.319 and we're we're in this for the long haul and 327 00:21:51.880 --> 00:21:56.599 as much as we can enable the space with modernized solutions, 328 00:21:56.960 --> 00:21:58.440 will continue. 329 00:21:57.880 --> 00:21:58.279 To do that. 330 00:22:00.279 --> 00:22:02.839 Let's talk about the crypto market at large. You know, 331 00:22:02.880 --> 00:22:04.920 we kind of touched on it earlier with the ETF 332 00:22:05.000 --> 00:22:08.319 launches Crypto going mainstream, Looking at your thoughts on that, 333 00:22:08.400 --> 00:22:12.440 and look, even presidential candidates are now suggesting the United 334 00:22:12.480 --> 00:22:15.359 States at Big One as a treasury reserve asset. It 335 00:22:15.440 --> 00:22:19.960 seems we're entering a new era of crypto adoption with 336 00:22:20.119 --> 00:22:21.880 politics integrated and much more. 337 00:22:23.599 --> 00:22:24.359 Yeah, we are. 338 00:22:25.599 --> 00:22:28.920 I mean at Bitcoin Nashville alone and in it to 339 00:22:29.759 --> 00:22:33.799 be fair, it was my first time attending that specific conference. 340 00:22:34.200 --> 00:22:38.240 I've been to a handful of the other conferences there. 341 00:22:38.279 --> 00:22:45.279 The political representation blew my mind. And even hearing Michael 342 00:22:45.319 --> 00:22:50.599 Saylor speak about his outlook on bitcoin not only from 343 00:22:50.640 --> 00:22:56.680 a corporate adoption perspective, but from a global adoption perspective 344 00:22:57.200 --> 00:23:01.119 for nations in debt, I mean, it is just fascinating 345 00:23:01.240 --> 00:23:07.119 to see the intersection here between what you know, a 346 00:23:07.160 --> 00:23:11.079 few years ago might have been for retail the retail 347 00:23:11.200 --> 00:23:14.319 use case and now you have people speaking, you have 348 00:23:14.440 --> 00:23:19.000 presidential candidates and Michael Saylor speaking about the use cases 349 00:23:19.000 --> 00:23:21.640 for nations and debt. I mean, it is, it is 350 00:23:21.680 --> 00:23:22.720 truly fascinating. 351 00:23:23.000 --> 00:23:28.680 So yeah, and then I mean I didn't. I don't 352 00:23:28.680 --> 00:23:32.519 think people want to see crypto become politicized, but unfortunately 353 00:23:32.559 --> 00:23:36.000 some people and the government have made it that way 354 00:23:36.039 --> 00:23:38.480 and as a result, it seems like it's going to 355 00:23:38.480 --> 00:23:41.359 be an election issue. Certainly not number one, you know, 356 00:23:41.359 --> 00:23:44.039 for the majority of the nation, but for some people 357 00:23:44.079 --> 00:23:47.279 it's a single issue item for them, like they're like, hey, 358 00:23:47.319 --> 00:23:50.079 you're anti crypto, I'm going to vote against you. And 359 00:23:50.119 --> 00:23:52.640 we're starting to see some of that. And what are 360 00:23:52.640 --> 00:23:56.039 your thoughts on it becoming this election thing and the 361 00:23:56.079 --> 00:24:00.359 industries raising campaigns, excuse to me funds to need to 362 00:24:00.880 --> 00:24:02.480 pro crypto candidates and so forth. 363 00:24:04.079 --> 00:24:05.240 Yeah, I won't. 364 00:24:05.319 --> 00:24:09.759 I won't comment too much there because I think, like 365 00:24:09.960 --> 00:24:15.480 any political topic, it can become polarizing. 366 00:24:15.720 --> 00:24:17.920 But what I will focus. 367 00:24:17.680 --> 00:24:22.160 On here is, you know, we are neutral from a 368 00:24:22.160 --> 00:24:28.039 political standpoint, and our mission is to build solutions to 369 00:24:28.839 --> 00:24:33.880 enable whatever the regulation is, and you know, keep users 370 00:24:33.920 --> 00:24:39.880 and institutions informed around what this regulation is. And how 371 00:24:40.000 --> 00:24:43.799 we can continue to You know, I again, like I said, 372 00:24:44.240 --> 00:24:47.680 any political topic can get noisy. We are focused on 373 00:24:48.240 --> 00:24:56.279 enabling companies, individuals, and government agencies with solutions to explore 374 00:24:56.559 --> 00:24:58.519 these different emerging technologies. 375 00:25:00.480 --> 00:25:03.559 What are your thoughts on stable coins and tokenization? The 376 00:25:03.680 --> 00:25:06.480 stable coin market is heating up, and are some of 377 00:25:06.519 --> 00:25:09.039 your clients stable coin issuers or are some of them 378 00:25:09.079 --> 00:25:11.119 looking to use stable coins? And what are some of 379 00:25:11.119 --> 00:25:13.519 the tax implications and so forth. 380 00:25:15.079 --> 00:25:15.359 Yeah. 381 00:25:15.559 --> 00:25:22.359 No, I see stable coins having a lasting future as 382 00:25:22.400 --> 00:25:26.839 it relates to corporate adoption and use case. I mean, 383 00:25:26.880 --> 00:25:33.480 if you think about payment processing and international transfers, and 384 00:25:34.039 --> 00:25:38.440 a couple specific examples i'll give here, like Stripe helps 385 00:25:38.519 --> 00:25:42.759 merchants to accept stable coins and PayPal has launched a 386 00:25:42.799 --> 00:25:46.640 stable coin. I see this being a lasting use case 387 00:25:46.799 --> 00:25:50.279 and stable coins fall under that same guidance. You know, 388 00:25:52.720 --> 00:25:57.720 one thing I'll say about stable coins specifically is at 389 00:25:57.759 --> 00:26:02.240 the surface, it might seem as if okay, I will 390 00:26:02.279 --> 00:26:05.039 record this one to one, I can say this is 391 00:26:05.119 --> 00:26:07.680 worth one dollar and I don't. I don't need to 392 00:26:07.720 --> 00:26:11.519 track any price volatility here. That was actually my outlook 393 00:26:11.599 --> 00:26:15.039 for stable coins. And then you think of the FTX 394 00:26:15.160 --> 00:26:18.480 use case, you still need to track what the actual 395 00:26:18.599 --> 00:26:22.799 price is because there is a scenario where that price 396 00:26:22.839 --> 00:26:28.000 still does fluctuate. So same guidance applies to stable coins. 397 00:26:28.359 --> 00:26:31.720 But we are seeing more and more use cases as 398 00:26:31.759 --> 00:26:36.160 it relates to stable coins, and I think stable coins 399 00:26:36.279 --> 00:26:43.680 are actually an extremely approachable entry for you know, people 400 00:26:43.680 --> 00:26:46.480 who are not as familiar with the cryptos. 401 00:26:46.720 --> 00:26:48.440