FASB Advances Crypto Accounting Standards Amid Regulatory Developments
The Financial Accounting Standards Board (FASB) has voted to add a crypto-focused project to its technical agenda aimed at clarifying how cryptocurrency transfers are treated and when transferred assets can be derecognized from a company's balance sheet. This initiative addresses the complex issue of derecognition stemming from instantaneous and irreversible crypto transfers, with outcomes dependent on custody arrangements, blockchain confirmation, and whether control has shifted.
FASB may expand the scope of Accounting Standards Update (ASU) 2023-08, issue new derecognition guidance, or pursue both avenues to fill existing reporting gaps. This project follows a late-October 2025 effort assessing whether stablecoins can be classified as cash equivalents, contributing to the broader objective of establishing a consistent framework for crypto reporting in corporate filings.
Building on the 2023 fair-value accounting mandate, under which qualified crypto assets must be reported at market value quarterly with gains and losses reflected in earnings, the new project is part of a continued refinement of crypto accounting standards.
Separately, the U.S. Treasury is considering exempting cryptocurrency holdings from the Corporate Alternative Minimum Tax (CAMT). Notice 2025-49 outlines an option to disregard fair-value adjustments for CAMT liabilities, signaling significant tax policy considerations.
In regulatory developments, the Senate Finance Committee held a hearing on October 1, 2025, to discuss aligning digital asset taxation with securities and commodities laws. The hearing included testimonies from Coinbase and other stakeholders on topics such as staking rewards, airdrops, and stablecoins.
Additionally, the Internal Revenue Service (IRS) has been issuing warning letters to crypto investors since May 2025 as part of a broader enforcement push, indicating increasing regulatory scrutiny of the digital asset space.
