Digital assets are moving faster than today’s accounting rules, and the U.S. has finally taken notice.

To remove the confusion around crypto reporting, the Financial Accounting Standards Board (FASB) is developing new guidance that will clearly define when transferred crypto assets should disappear from a company’s balance sheet.

A Major Step Toward Modern Crypto Accounting

The U.S. accounting rule-setter is zeroing in on one of the biggest blind spots in corporate crypto use:

How do you account for crypto when it moves from one wallet, custodian, or blockchain address to another?

This week, FASB officially added a new project to its technical agenda focused entirely on crypto-asset transfers and derecognition, a move that could redefine how businesses handle digital asset transactions.

As companies increasingly rely on multi-wallet structures, custodial crypto platforms, and blockchain-based payment rails, the absence of unified rules has created real uncertainty for CFOs, controllers, auditors, and finance teams.

Why This Matters: The Derecognition Gap

FASB openly admitted that current crypto reporting is “inconsistent and non-intuitive.”

Crypto can move instantly, but accounting rules lag behind. The accounting outcome depends on custody, confirmations, and who controls the private keys.

FASB is now considering expanding ASU 2023-08, issuing new derecognition guidance, or introducing a combined framework.

This project follows another initiative to determine whether stablecoins should count as cash equivalents.

Fair-Value Accounting Changed Everything

FASB’s fair-value accounting rule, effective for fiscal years beginning after December 15, 2024, requires companies to report crypto at market value each quarter. Gains and losses hit earnings immediately.

Treasury & IRS Are Reshaping Crypto Tax Rules Too

The Treasury is preparing to exempt digital assets from the Corporate Alternative Minimum Tax (CAMT), outlined in IRS Notice 2025-49.

This change prevents companies from paying tax on unrealized crypto gains.

The Senate Finance Committee and multiple experts highlighted gaps in staking, airdrops, and stablecoin taxation. Meanwhile, the IRS has increased crypto enforcement since May.

📈 What This Means for Businesses Right Now

Understanding these updates is no longer optional — especially for companies integrating crypto into treasury operations, payments, or investment strategies.

This new guidance will influence:

1. how assets appear on the balance sheet
2. the timing of recognition and derecognition
3. valuation accuracy
4. internal controls
5. audit requirements
6. tax reporting

Funds To Function Insight

At Funds To Function, we help businesses stay ahead of fast-changing U.S. accounting and tax landscapes.
Crypto adoption is rising, rules are evolving, and compliance is becoming stricter, but businesses that prepare early will benefit most.

Our expertise ensures your financial reporting remains accurate, compliant, and future-ready, even as digital asset standards transform.

Disclaimer

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