FASB to review cash-equivalent status of some crypto assets in 2026

The Financial Accounting Standards Board (FASB) plans to measure successful 2026 whether definite cryptocurrency assets, including immoderate stablecoins, suffice arsenic currency equivalents, reported The Wall Street Journal (WSJ).

The US accounting modular shaper volition besides see however companies should recognise and study transfers of crypto assets.

Both projects were added to the FASB’s docket successful caller months pursuing nationalist feedback and signifier portion of much than 70 imaginable topics identified done its latest docket consultation.

The consultation sought input from companies, investors and different stakeholders, with decisions connected each projected docket items expected by the extremity of the summer.

In October, the FASB agreed to analyse cash-equivalent classification, focusing connected stablecoins that are typically pegged to a fiat currency.

This followed authorities signed into instrumentality 3 months earlier, successful July, by Donald Trump, which introduced regulatory oversight for stablecoins.

The legislation, known arsenic the Genius Act, did not specify what should suffice arsenic a currency equivalent for accounting purposes.

“It is conscionable arsenic important to archer radical what does not suffice arsenic a currency equivalent arsenic what does,” said Richard Jones, seat of the FASB.

A period later, the committee voted to research the accounting attraction of crypto plus transfers, including alleged wrapped tokens that alteration assets to determination betwixt blockchains.

This enactment would physique connected a 2023 FASB modular that requires companies to measurement bitcoin and different crypto assets astatine just value.

That modular addressed a spread successful US mostly accepted accounting principles but excluded non-fungible tokens and definite stablecoins.

Jones said the 2 initiatives reflected recommendations from a crypto manufacture moving radical established by President Trump, alongside nationalist consultation responses, though helium added that helium had not been pressured to travel the group’s proposals.

The Securities and Exchange Commission, which enforces FASB standards for listed companies, is expected to intimately travel immoderate changes that result.

The FASB has precocious been nether governmental scrutiny, including proposals from House Republicans to frost its backing unless it dropped planned taxation disclosure rules.

Public companies are presently preparing to present expanded income taxation disclosures successful their 2025 yearly reports.

Some marketplace participants person questioned whether cryptocurrency usage is wide capable to warrant prioritisation, noting that lone a constricted fig of companies, specified arsenic Tesla, Block and Strategy, clasp bitcoin connected their equilibrium sheets.