Advertisement
FASB Says Crypto Assets Should Be Marked at Current Values
The first U.S. accounting rule specifically for cryptocurrency will say that companies must use a fair-value approach that would demand certain digital assets be measured at what they would trade for in the markets, according to the Financial Accounting Standards Board (FASB).
At a Wednesday meeting, the board evaluated comments on the change and gave staff permission to draft a final version of the new accounting standard, effective for fiscal years starting after December 15, 2024. The final language is expected to be approved in a written vote before the end of the year.
Unpacking PayPal’s Stablecoin Demand From…
Binance Receives License to Offer Bitcoin…
Bitwise CIO on Spot Bitcoin ETF Race: You Have to…
How to Navigate the Treasury Department’s…
Mastercard’s Crypto Card Partnership With Binance…
The FASB, which is a nongovernmental standard-setting board overseen by the U.S. Securities and Exchange Commission (SEC), had proposed the rule in March. The suggested changes departed from the usual practice of marking these assets for their unrealized losses – seen by the industry as a barrier to wider crypto adoption. Specifically moving crypto into the accounting rules means companies will make gains and losses a part of their quarterly income reports.
“I think we heard overwhelmingly from investors that allocate capital based on the use of financial statements that this will provide them better information to make their decisions, and so I’m fully supportive of it,” said Richard Jones, the board’s chairman.
The board is encouraging companies to seek early adoption of the new standard.
Recommended for you:
- First Mover Americas: Bitcoin Still Stuck in Limbo
- Uniswap DAO Approves Boba Network Deployment in Latest Community Vote
- Ethereum’s Shanghai Upgrade Will Permanently Alter ETH Economics
Michael Saylor, the founder and former CEO of MicroStrategy (MSTR), tweeted that this development “eliminates a major impediment to corporate adoption of $BTC as a treasury asset.”
Read More: U.S. Accounting Board Seeks Crypto Standards Requiring Firms to Report Price Shifts
Newsletter Every Tuesday
Sign up for State of Crypto, our weekly newsletter examining the intersection of cryptocurrency and government
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Jesse Hamilton is CoinDesk’s deputy managing editor for global policy and regulation. He doesn’t hold any crypto.
