MicroStrategy Wins Bitcoin Fair Value Vote; XRP Lawyer Sceptical
The Financial Accounting Standards Board (FASB) voted in support of allowing companies reporting Bitcoin holdings at fair value. This could likely be a massive regulatory development in the context of institutional investors like Blackrock, Fidelity and Bitwise seeking to get their spot Bitcoin ETF applications approved.
Also Read: Terra Luna Classic Proposal To Revive USTC And LUNC To $1
Bitcoin Price At Fair Value
The FASB vote means companies being able to measure the value of the Bitcoin and other cryptocurrencies based on accounting rules. The new accounting rules, likely to be published by the end of 2023, will mandate a fair value measurement that companies can follow when they report crypto holdings, subject to price fluctuations. These rules will come into effect from 2025, while companies willing to report prior to that will have the option to, according to a Bloomberg report.
For example, companies will be able to follow the FASB accounting rules to report in earnings report the total value at that time the Bitcoin price, with the most recent pricing. FASB member Christine Botosan said,
“It’s not very often that we can both take cost out of the system and improve the decision usefulness of information, and it makes it a really easy vote to do both of those.”
XRP Lawyer: Very Significant Move
John Deaton, the attorney representing thousands of XRP token holders in the U.S. Securities and Exchange Commission (SEC) lawsuit, described the FASB accounting rules initiative as a very significant development at the face of it. However, the attorney would like to see in the longer term if non-crypto native companies like MicroStrategy will be open to mentioning crypto holdings in their balance sheets. He said,
“On paper this is very significant. We will see if it truly opens the door for companies, not named MicroStrategy, to keep BTC on its balance sheet. You combine this with a spot ETF and it could move the needle.”
Also Read: Blackrock Bitcoin Spot ETF Could Unlock $30 Trillion: Bloomberg Analyst
- 99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- ‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications
- Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model
- Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
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.
