Reporting Crypto Holdings: An Update from the Financial Accounting Standards Board

reporting cryptocurrency

The world of finance has undergone massive changes in recent years due to the adoption of cryptocurrencies. This mainstream phenomenon has revolutionized how business owners and crypto holders navigate and manage finances. As the crypto market continues to push boundaries and evolve, investors must stay up-to-date with guidelines from the Financial Accounting Standards Board (FASB) regarding all accounting for crypto reporting.

Knowing what to anticipate from the most recent FASB accounting for crypto protocol is essential if you have crypto holdings. Here are the new FASB rules that will change how your crypto holdings are reported.

Proposed Accounting Standards Updates

The FASB has focused on reporting crypto holdings through new accounting standards updates (ASUs). These proposed updates apply to individuals with crypto holdings when all of the following are present:

  • The asset meets the U.S. GAAP description for intangible assets
  • The holder does not have the enforceable rights or claim to underlying goods, services, and assets
  • The assets are created and reside on a distribution ledger built on blockchain technology
  • The crypto assets are secured with cryptography
  • The crypto assets are fungible
  • The assets are not created or issued by the reporting entity

Measuring Crypto Assets

Along with changes to reporting crypto holdings, the FASB has added guidelines for measuring crypto assets according to fair value measurement. The current FASB proposal requires crypto holdings to be measured at a fair value every reporting period, while changes in the fair value are recorded through the holder’s net income. FASB board members believe a fair value measurement of crypto assets will better reflect crypto-economics.


The presentation and disclosure of crypto assets are also changing under newly proposed guidelines from the FASB. With the new guidelines, in-scope cryptocurrency assets must be presented as separate from other intangible assets on the holder’s balance sheet. The fair value of crypto assets must also be presented separately in the holder’s income statement and statement of cash flows.

These presentation requirements apply to public and private crypto holders, except for investment companies subject to ASC-946 or nonprofit entities subject to ASC-958.


The crypto disclosure process is subject to change under the FASB update for reporting crypto holdings. The proposal requires crypto-holding entities to disclose the following:

  • The name, cost basis, units, and fair value of crypto assets currently held and the aggregate fair values and cost bases of assets that are not individually significant for each reporting period.
  • Annual disclosure of how an asset’s cost basis is determined
  • For each reporting period, entities must disclose the nature of the duration of restrictions on crypto asset holdings and circumstances to eliminate these restrictions.
  • Annual disclosure through a reconciliation of activity between the start and end of a reporting period, such as asset additions, gains, or losses; the nature of the holder’s additions and dispositions, and the total amount of gains and losses from dispositions, must also be disclosed.

Take the Next Step

Staying up-to-date with the latest Financial Accounting Standards Board information is only the first step to understanding your crypto assets. For long-term financial stability and wealth management, the experts at Smith, Stohlman, James & Gardere, P.A. can help. Contact us today to learn more about our certified public accounting services and build a robust financial future.