Key Points

  • The Financial Accounting Standards Board (FASB) agreed in a unanimous vote on Wednesday to add accounting for transfers of crypto assets, including wrapped tokens and receipt tokens, as a new project on its high-priority technical agenda.
  • As part of the project, the board will consider whether to expand the scope of its first digital asset guidance issued in 2023, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60), which laid the groundwork for crypto-related updates under generally accepted accounting principles (GAAP).
  • During the vote, several board members reflected on their decision to pivot toward considering broader crypto asset standards, compared with the narrower crypto guidance issued about two years ago. Board member Frederick Cannon said during the meeting: "I support our crypto accounting because I think whether you're a crypto skeptic or a supporter, we provide accounting that better reflects economic substance and achieves full transparency, and I think... by adding this project, we can continue to move in that direction, regardless of how people view cryptocurrency today."

In-Depth Analysis

The U.S. accounting standard-setter voted 7-0 to launch a new crypto standard-setting project, marking the FASB's third technical agenda project addressing cryptocurrency accounting, said FASB spokesperson Christine Klimek. Most recently, last month the FASB voted to address stablecoin accounting, adding a project to its technical agenda to consider whether stablecoins should be treated as cash equivalents.

The FASB's action on Wednesday was based on stakeholder feedback, including the FASB's 2025 Invitation to Comment—Agenda Consultation, recommendations in a report issued by the President's Working Group on Digital Asset Markets, and a formal agenda request from the Crypto Council for Innovation, Klimek said.

The new project launches about two years after the FASB first provided digital asset guidance. That guidance requires companies to report qualifying crypto assets using a fair value accounting approach, changing the previous practice where most companies treated them as intangible assets and recognized impairment at the lowest observable value during the reporting period. But the guidance focused only on specific crypto assets such as Bitcoin, excluding assets like non-fungible tokens (NFTs).

The new project reflects significant interest from the FASB, said Nik Fahrer, a certified public accountant and director at accounting and consulting firm Forvis Mazars. "Financial and accounting leaders should view the FASB's vote to approve this project as a signal that the standard-setter is seeking to understand nuances related to crypto assets, as the need for clarity is rising," Fahrer said in an email.

While the previous standard update provided a path for crypto assets to be reported at fair value, it only provided an accounting path for specific assets meeting six criteria, Fahrer said. For example, the asset needs to be fungible, secured through cryptography, and must exist on a distributed ledger based on blockchain or similar technology, Fahrer noted. This left uncertainty in the accounting for wrapped tokens—a type of crypto asset that represents another crypto asset—Fahrer said, noting that the FASB may issue more crypto guidance in the future.

"Novel and innovative uses of crypto assets can emerge quickly and often gain attention," said Fahrer, who leads his firm's blockchain and digital assets practice. "Don't be surprised if we see the FASB continue to vote to add additional crypto asset guidance in the future."