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- 1 The long-awaited Bitcoin Accounting Rules are about to come.
- 2 “Fair value accounting is coming to Bitcoin,” says Michael Saylor over the accounting rules.
On September 6, 2023, Bloomberg Tax shared an update about the “Bitcoin Accounting Rules to capture rises and dips.” According to the report, the fair value accounting rules began earlier in 2025. However, wrapped tokens are excluded from the final rules.
Michael Saylor, the Founder of MicroStrategy, penned about the same. He wrote in his recent X ( formerly Twitter) post that “fair value accounting is coming to Bitcoin. This upgrade to FASB accounting rules eliminates a major impediment to corporate adoption of BTC as a treasury asset.”
What’s Inside The Bitcoin Accounting Rules?
In the recently held meeting of the Financial Accounting Standard Board (FASB) it handed out “accounting for and disclosure of crypto assets,” on September 6, 2023, Wednesday. As noted in the meeting materials, the purpose of this board meeting was “to discuss feedback received on the proposed Accounting Standard Update.”
Notably, the crypto companies and other businesses with significant holdings of digital currencies will get the accounting rules. That will measure the value of Bitcoin, Ethereum, and other crypto in their coffers, while the U.S. accounting standard-setters have unanimously voted on Wednesday.
The new rules are expected to be published by year-end. It will state that the companies that hold or invest in cryptocurrency will be required to report their holdings at fair value. This includes rebounds in value after prices dip. It must be noted that fair value is a measurement that aims to capture the most up-to-date value of an asset.
Meanwhile, the new standard will inject volatility into the earnings update of crypto companies that are heavily invested in cryptocurrencies. The ability to record recoveries will be an improvement over the current practice, as companies and accountants have stated in the FASB for months.
The Officials Statements
Christine Botosan, the FASB member, has said that “it’s not very often that we can both take costs out of the system and improve the decision usefulness of information, and it makes it a really easy vote to do both of those.”
The rules will go into effect earlier in 2025, still, the crypto companies will have the option to apply them early, as FASB agreed.
Jeff Rundlet, head of accounting strategy at accounting software company Cryptio, said “It’s a great step forward for the entire crypto market. I think it’s a great step toward mainstream adoption.”
Bloomberg Tax noted under the rulebook gaps about some well-known names in the crypto world. As it reported, “no part of the rulebook for US accounting specifically addresses how companies like enterprise software maker MicroStrategy Inc., automaker Tesla Inc., or crypto exchange Coinbase Global Inc. should recognize and measure the digital currencies they own.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
