Accounting regulator will let firms report crypto at fair market value: Bloomberg Law

Quick Take

  • Companies holding cryptocurrency can now report their holdings at fair market value. 
  • The rules become active in 2025, but companies can apply it earlier. 

The Financial Accounting Standards Board, a U.S. regulating body that sets general accounting practices, has approved new rules to allow companies to report their crypto holdings at fair market value. 

The rules will be published by the end of 2023 and become active in 2025, but companies can apply the rules early, Bloomberg Law reported. Wrapped tokens are exempt from the new rules.

Cody Carbone, vice president of policy at the blockchain trade association Chamber of Digital Commerce, called the decision "huge news."

"The previous accounting measurement was one of the biggest barriers for institutions to hold crypto — they were measured at impairment (measured when price went down but not up)," he added. "Fair value makes sense and will encourage institutional holdings of crypto."

Fair market value describes an asset's most recent valuation, which can include prices recovering after a dip. 

Impact on crypto-holding firms

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