The Financial Accounting Standards Board (FASB) voted unanimously on Wednesday to change how companies account for and disclose holdings of cryptocurrencies like Bitcoin and other digital assets. The new rules will take effect starting in 2025 and are aimed at providing investors and other financial statement users with more transparency around these volatile assets.

Established in 1973, the FASB is recognized by the U.S. Securities and Exchange Commission as the designated accounting standard setter for public companies.

“I think in my brief term here, there hasn’t been an issue that has excited such passion from people,” said FASB Chairman Richard Jones. “I think we heard overwhelmingly from investors that allocate capital based on the use of financial statements that this will provide them better information to make their decisions, and so I’m fully supportive of it.”

FASB board member Christine Botosan agreed.

“It’s not very often that we can both take costs out of the system and improve the decision usefulness of information,” she said. “It makes it a really easy vote when we can do both of those.”

Under current rules, companies have to record cryptocurrency holdings at their original cost and then write them down as an “impairment charge” if the value drops below cost—but c

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Author: Decrypt AI, Edited by Ryan Ozawa

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