CRYPTO ACCOUNTING STANDARDS NOW!

The Financial Accounting Standards Board, which sets accounting standards for private and public U.S. companies, has not developed any accounting standards for digital assets.  The lack of uniform standards has led to companies with crypto holdings to speculate on an  appropriate accounting method on their own.  This impacts financial statements and discourages companies from buying and holding digital assets. It is essential that businesses and investors of all types are able to clearly reflect the value of their assets on their balance sheets.   

 

“The growth of digital assets has been staggering and will only continue to rise. To ensure clear rules of the road, authoritative accounting guidance from the FASB is imperative. Companies with bitcoin holdings deserve clarity. If our institutions do not keep pace, engagement with digital assets will stall. I am urging the FASB to take the lead and issue guidance that will encourage the ongoing growth of this industry.”

U.S. Rep. Tom Emmer

Co-Chair, Congressional Blockchain Caucus

OUR PROBLEM

Because there are no accounting rules for crypto, companies that are fortifying their balance sheets with digital assets classify them as indefinite-lived intangible assetsThis is one of the biggest barriers to the adoption of digital assets.  In practice, companies buying crypto record the value at its purchase price and it is impaired if the value drops.  However, if the value goes up, companies cannot record a gain while holding crypto, only when they sell. 

MORE THAN 50 DIGITAL ASSET STAKEHOLDERS URGE FASB TO
DEVELOP ACCOUNTING STANDARDS FOR DIGITAL ASSETS

The Chamber of Digital Commerce, along with over 50 digital asset stakeholders, submitted a letter to the Financial Accounting Standards Board advocating for fair value accounting treatment and clear GAAP standards for digital assets. 

Anchorage Digital National Bank Association
Armanino, LLP
Bitwise Asset Management, Inc.
Blockdaemon
BlockFi, Inc.
Bloq, Inc.
Brownstone Research
Castle Island Ventures
Circle Internet Financial, Inc.

Compass Mining, Inc.
Compute North LLC
Cooley LLP
Core Scientific, Inc.
Dapper Labs
Digital Currency Group, Inc.
DLx Law
Elliptic Enterprises Limited
Eris Exchange LLC

FinClusive Capital, Inc.
Flexa Network, Inc.
GEM Mining Gemini Trust Company, LLC
I-Chain Capital
John L Williams, Esq. President, Agents and Corporations, Inc.
Kirkwood Bank of Nevada/GenuBank
Liquid Advisors, Inc.
Lukka, Inc.
Marathon Digital Holdings, Inc.
Martin Davis PLLC
MicroStrategy, Inc.
Nelson Mullins Riley & Scarborough LLP
Notabene, Inc.
Off the Chain Capital
Osprey Funds, LLC
Overstock.com, Inc.
Parsons and Whittemore
Overstock.com, Inc.

Parsons and Whittemore
Paxos Trust Company
Ripple Labs, Inc.
Securrency, Inc.
Sequoir
Silvermine Capital Advisors, LLC

Solidus Labs, Inc.
The Accounting Blockchain Coalition
The Maker Foundation
Titan IO, Inc.
tZERO Group, Inc.
VeriBlock, Inc.
Vesper Brewing Co Ltd
Wipfli, LLP
Zilliqa Capital Pte. Ltd
Zilliqa Research Pte. Ltd
Zuber Lawler LLP

Our Voices Have Been Heard – FASB Board Acknowledges Digital Assets as a Priority

Following their consultation, which received an overwhelming response, FASB will research how to account for and disclose digital assets and ESG-related financial contracts.  According to FASB, when there is significant investor interest in an emerging issue – in this case, the lack of clarity for digital asset accounting – they will occasionally accelerate projects.  From the 500 letters sent to FASB, 445 commented solely on accounting standards for cryptocurrency, forcing a shift in priorities. 

Accordingly, the Chamber will continue to work with FASB to ensure that clarity for digital assets is a critical topic of focus for this year’s agenda and any upcoming meetings. 

MEDIA AND RESOURCES

cube icon

URGE FASB TO MOVE FORWARD

FASB To Determine Whether To Move Forward On Accounting Standards For Digital Assets.

cube icon

FASB UPDATE

Industry overcomes significant hurdle in obtaining crypto accounting standards.

cube icon

BLOCKCHAIN Caucus

Congress is calling on FASB to establish accounting standards for digital assets.

cube icon

WALL STREET JOURNAL

FASB Targets new long term agenda, rules on expense disclosure in 2022.

cube icon

BLOCKCHAIN Caucus

Congress is calling on FASB to establish accounting standards for digital assets.

cube icon

THE DEVIL IS IN THE DETAILS

Michael Saylor on crypto accounting

cube icon

wall street journal

Accountants, lawmakers urge rules on crypto accounting standards.

cube icon

ADDING IT UP

A webinar on establishing robust accounting standards for digital assets.

JOIN THE CAMPAIGN

#CryptoAccountingStandardsNow!