Coinbase has changed its accounting treatment for customer-held digital tokens, removing them from its balance sheet. This adjustment follows the rescission of the SEC's 2022 Staff Accounting Bulletin No. 121. Despite this change, questions remain regarding the true ownership of these assets in bankruptcy scenarios, as customers might still be considered unsecured creditors.

This is a significant shift for Coinbase and could reshape how digital assets are perceived in terms of ownership and liability. Clarity on customer rights in bankruptcy remains crucial for building trust in the crypto ecosystem.