Accounting regulator will let firms report crypto at fair market value: report

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Accounting regulator will let firms report crypto at fair market value: report
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The Financial Accounting Standards Board's new rule becomes effective in 2025, but companies can apply it earlier.

The rules become active in 2025, but companies can apply it earlier.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.The Financial Accounting Standards Board, a U.S. regulating body that sets general accounting practices, has approved new rules to allow companies to report their crypto holdings at fair market value.

The rules will be published by the end of 2023 and become active in 2025, but companies can apply the rules early, Bloomberg LawCody Carbone, vice president of policy at the blockchain trade association Chamber of Digital Commerce,"The previous accounting measurement was one of the biggest barriers for institutions to hold crypto — they were measured at impairment ," he added."Fair value makes sense and will encourage institutional holdings of crypto.

Fair market value describes an asset's most recent valuation, which can include prices recovering after a dip.

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