US accounting rulemakers took a significant step Wednesday toward crafting long-awaited rules for how companies report holdings of cryptocurrencies like Bitcoin, a move that would bring clarity to big crypto investors like Tesla Inc. and MicroStrategy Inc.
Their first move: defining the exact, narrow population of digital assets that potential new rules would cover. A narrow focus is essential, according to members of the Financial Accounting Standards Board, who said they want to cover accounting for common cryptocurrencies but not non-fungible tokens, or NFTs.
Setting parameters moves the market toward getting official accounting for digital currencies and replacing guidance that calls for treating crypto on company balance sheets like intangible assets. That treatment means the value of currencies like Bitcoin and Ethereum can only be adjusted downward, never back up if the market rebounds.
FASB received hundreds of requests last year to write formal rules for operating companies...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...