FASB Confirms 'Fair Value' Approach for Corporate Crypto Holdings

The US Financial Accounting Standards Board has updated its guidelines to allow corporations to recognize changes in the "fair value" of their cryptocurrency holdings. The rule change, taking effect after December 15, 2024, will benefit companies that hold crypto on their balance sheets. Under the new guidelines, companies will report the fair value, cost-basis, and types of assets they possess, versus solely reporting a loss if assets are worth less than the purchase price, as is the current practice.