A new and very problematic determination of the SEC, as part of SAB 121, will dramatically inflate the Balance sheet of companies holding and safeguarding the crypto assets belonging to users of their platforms. These companies will be required to recognize a liability in their statement of financial position that reflects their obligation to safeguard the crypto assets held for users of the platform. The liability will be recorded against a corresponding asset based on the fair value of the crypto assets. As a result, Coinbase, the world’s largest public crypto exchange, is expected to increase its statement of financial position by 14 times! This enormous Balance sheet enlargement is expected to limit the scope of the activities of these entities.