Cryptocurrencies – tokens like Bitcoin and Ethereum – should be measured at fair market value as that reflects the underlying economics of those transactions, the FASB ruled on Oct. 12, 2022, a win for investors who pushed for that outcome.
“We’ve heard from investors that they want transparency through disclosure and the only way to get to that is through fair value,” FASB member Gary Buesser said. “I’m looking at a chart for Bitcoin over the last year-and-three quarters – it’s ranged from twenty thousand to sixty thousand back to nineteen thousand ninety-six, so the only way to get any kind of real information on the holding of Bitcoin or Ethereum is through fair value.”
The guidance would be limited to fungible tokens, deemed to be intangible assets, secured through cryptography on a blockchain or distributed ledger, and do not provide the asset holder “with enforceable rights to or claims on underlying goods, services, or other assets.”
The ruling means those assets would be...
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