The Financial Accounting Standards Board (FASB) of the United States has allocated 75 days to receive public feedback on its cryptocurrency proposal, which seeks to accurately reflect the economic value of Bitcoin and other virtual currencies in a company’s balance sheet.
This FASB Regulation Will Create a “Win-Win” Situation for Investors
To introduce the first open standard for cryptocurrency in US GAAP, a proposal is expected to be published at the end of March. After much discourse, an ultimate standard should come out before 2021 ends. Gary Buesser, a member of the Financial Accounting Standards Board (FASB), stated in a public statement that investors have been inquiring about cryptocurrency‘s value, and they are working to provide an answer.
Buesser noted that the previous accounting system needed to be improved, and the new one far surpassed expectations. “It provides us with information on what assets our company owns, their current value, and how much they paid for them,” he said. He highlighted this as an example of how quickly FASB can respond to market needs: “it’s a win-win situation for investors.”
These Regulations Will Renew the Lost Trust in Cryptocurrency
At a time when cryptocurrency is gradually rebounding from its all-time lows, the Financial Accounting Standards Board (FASB)’s proposal has reached completion. Yet despite this slight recovery in the market, uncertainty and regulatory pressure still linger over cryptocurrency assets; investors have notably lost their ardor for cryptocurrencies such as Bitcoin and Ethereum amid scandals like FTX that deter individuals from making rushed decisions.
Cryptocurrencies have been known to experience immense losses in value when their prices plummet. However, the financial reports are unable to reflect this recovery once the price stabilizes accurately. This proposal seeks to address these issues by introducing “Fair Value Measurement,” a system that allows cryptocurrency assets to be valued fairly.
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