Breaking: FASB’s Shot In The Arm To Bitcoin Community
In what could be a significant development amid a widespread crash in the cryptocurrency market, the Financial Accounting Standards Board (FASB) on Wednesday took a decision for addressing the recognition and measurement of digital assets, in a unanimous vote.
In this regard, deliberations would be held to review accounting for exchange-traded digital assets and commodities.
FASB Vote Goes All In
According to MicroStrategy’s Michael Saylor, the FASB agreed to add the project by a unanimous vote of 7-0 earlier in the day.
Congratulations to the Bitcoin community. This morning, by unanimous vote of 7-0, the Financial Accounting Standards Board (FASB) agreed to add a project to review Accounting for Exchange-Traded Digital Assets and Commodities.
Dan Held, director of growth marketing at cryptocurrency exchange Kraken, said,
This is amazing. One step closer to making it easier for corporates to own Bitcoin on their balance sheet and account for it in a cogent manner.
Breakthrough In The Long Term
The FASB’s board meeting handout stated that the purpose of the decision-making meeting was to ask the board whether to add a project to its technical agenda to address accounting for certain digital assets and commodities. Although the development does not guarantee any possible outcome in a time-bound manner, it could well prove to be a massive breakthrough in the long term.
It may be noted that in November 2018, the International Accounting Standards Board (IASB) decided against adding a project on the holdings of cryptocurrencies or initial coin offerings. Later, in June 2019, the International Financial Reporting Standards (IFRS) interpretations committee discussed how IFRS standards apply to holdings of cryptocurrencies.
The committee observed that a holding of cryptocurrency meets the definition of intangible asset in IAS 38, Intangible Assets, because it is capable of being separated from the holder and sold or transferred individually, and it does not give the holder a right to receive a fixed or determinable number of units of currency.
- Nasdaq-Listed Fitell Adds Pump.fun’s PUMP To Supplement Solana Treasury
- FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading
- Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000
- Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand
- Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
