FASB to review accounting rules for on-balance sheet digital assets_ Report

FASB to review accounting rules for on-balance sheet digital assets_ Report

A clearer framework for how companies can account for cryptocurrencies could pave the way for greater institutional adoption.

The Financial Accounting Standard Board (FASB) on Wednesday reportedly voted unanimously to launch a project to review the accounting for exchange-traded digital assets and commodities.

The news was tweeted by MicroStrategy (MSTR) CEO Michael Saylor, whose company holds more than 129,000 bitcoin (BTC) on its balance sheet. The FASB website shows "Accounting for Exchange-Traded Digital Assets and Commodities" on the agenda for today's board meeting, but has not yet been updated with the results of a vote.

As Saylor noted, the current rules may discourage companies from holding bitcoin on their balance sheets because the accounting forces fees when prices fall, but does not allow for refunds when prices rise.

Bitcoin bulls believe a clearer and fairer approach would make it much easier for companies and other institutions to keep the cryptocurrency on their balance sheets.