FASB Crypto Accounting Review Won’t Include NFTs, Certain Stablecoins: Report

The accounting standards body outlined its criteria for crypto assets that would be covered by a forthcoming rule regarding companies and their digital assets.

AccessTimeIconAug 31, 2022 at 8:54 p.m. UTC
Updated May 11, 2023 at 6:14 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Financial Accounting Standards Board (FASB) is excluding non-fungible tokens (NFT) and certain stablecoins from its cryptocurrency accounting review, the Wall Street Journal reported.

On Wednesday, the U.S. board described its criteria for crypto assets that would be covered by a long-awaited rule for companies to account for and disclose their holdings of digital assets.

FASB did not name specific crypto assets that would be excluded from the rule. But it said the digital assets addressed by the rule would include those that are intangible, don’t carry contractual rights to cash flows or ownership of goods and services, and those that are fungible, according to the Journal. NFTs are by their very nature non-fungible and may carry rights to underlying assets, while some stablecoins are tangible assets.

FASB board member Susan Cosper told the Journal that not many companies had invested in NFTs yet. “It’s not pervasive or material at this juncture," she said, adding that “it’s certainly something that we can focus on later if need be.”

FASB did not discuss reporting standards for companies holding cryptocurrencies like bitcoin (BTC) on their balance sheets. At present, companies must record an unrealized loss if the value of their holdings drop, even if the companies don't sell the assets. But they do not have to report unrealized gains. Similar rules don't exist for companies holding other assets. The crypto industry is hoping FASB will update its recommendations to address this disparity.

UPDATE (Aug. 31, 2022 21:00 UTC): Added background in last paragraph.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.