The United States Financial Accounting Standards Board’s (FASB) decision to allow companies to use “fair value” to account for their crypto holdings could be seen as another step toward the wider institutional adoption of cryptocurrency.

The board’s decision is “tentative” at this stage, and could be changed at future board meetings when they continue to weigh their options.

Anthony Tuths, principal of KPMG's Alternative Investment Tax practice, said the guidance could be bullish for broader mainstream crypto adoption, adding it is likely to go into effect in 2023: “FASB has just cleared the way for new accounting guidance which will allow most cryptocurrencies to be accounted for at fair value.

When this guidance goes into effect (likely in 2023) it will greatly help smooth the way for broader mainstream adoption.”

Tuths added that not all digital assets would qualify for the new accounting treatment.
However, nonfungible tokens (NFTs), asset-backed tokens and similar tokens are still subject to the previous guidelines.
Source: Cointelegraph
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