FASB set to roll out new accounting rules for crypto

FASB is the Financial Accounting Standards Board in the US. So, it looks like there’s some big news coming about how crypto gets accounted for. Starting in 2025, these new fair value accounting rules will kick in. However, wrapped tokens won't be included in these rules. Crypto companies and businesses with a lot of digital assets will finally get proper guidance on how to report the value of Bitcoin, Ethereum, and other coins they hold. The US accounting standard-setters voted unanimously on this just recently. The fresh rules should be out by the end of the year, and here’s the deal: companies with crypto will need to report their holdings at fair value. This means they’ll show the current value of their assets, so they can reflect those price recoveries when things go back up after a dip. Sure, it might cause some volatility in earnings for businesses heavily invested in crypto, but at least this is a step forward from the current way of doing things that folks have been telling the FASB about for months.