- US lawmakers are getting ready to draft crypto rules.
- All realms of crypto will be considered under the new drafting.
- NFT is still a question under the new rules.
The Financial Accounting Standards Board’s proposed regulations would cover all of the cryptocurrency’s erratic swings.
Most importantly, corporate financial statements would start to include crypto price increases rather than only declines, as they do now, provided the market recovers.
For the cryptocurrency sector, accountants, and investors who grumble about the existing approach, which only allows corporations that hold cryptocurrencies like Bitcoin or Ether to record value declines, the new rules would head in a different direction.
The FASB has not yet decided on its course of action, but the board has discussed evaluating cryptocurrencies at fair value or the price an asset would sell for in a well-functioning market.
Fair value measurement would accurately reflect the market worth of cryptocurrencies, according to supporters who urged FASB to act in hundreds of emails filed to the organization last year.
The board has so far restricted its attention to exchange-traded assets, which includes the most popular cryptocurrencies, like Bitcoin, which are frequently traded and have transparent values.
Non-fungible tokens (NFTs), which are consequently more difficult to value, won’t likely be covered by any prospective new regulations. The FASB isn’t anticipated to address stablecoins either, many of which are categorized as financial instruments and receive different accounting treatments.