Donald Trump

Bitcoin

Reserve

<p>The U.S. Financial Accounting Standards Board (FASB) has introduced a major update that changes how companies account for Bitcoin and other eligible cryptocurrencies. Businesses can now value their Bitcoin holdings based on current market prices, making financial reporting more transparent and accurate. The rule will be fully implemented in 2025, potentially encouraging more companies to adopt Bitcoin as a reserve asset.</p>   
<p><a href="https://coinpedia.org/news/why-bitcoin-is-going-up-today-key-drivers-behind-the-historic-106k-surge/" target="_blank" rel="noreferrer noopener">Bitcoin’s price jumped above $105,000</a> following two key developments: the FASB’s updated accounting standards and President-elect Donald Trump’s comments about creating a <a href="https://coinpedia.org/news/donald-trumps-strategic-crypto-reserve-will-ethereum-join-bitcoin/" target="_blank" rel="noreferrer noopener">Strategic Bitcoin Reserve</a>, similar to the nation’s oil reserves. The cryptocurrency hit a peak of $105,142 before settling at $104,609. Since the election, <a href="https://coinpedia.org/news/why-bitcoin-is-going-up-today-key-drivers-behind-the-historic-106k-surge/" target="_blank" rel="noreferrer noopener">Bitcoin has surged by 55%</a>, with a trading volume of $62 billion.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/pete_rizzo_/status/1868446105366577599 
 </div>
</figure>   
<h2 class="wp-block-heading" id="h-ending-outdated-practices"><strong>Ending Outdated Practices </strong></h2>   
<p>Pete Rizzo of <em>Bitcoin Magazine</em> highlighted the significance of this update in a post on X. He also referenced comments by Michael Saylor, co-founder of MicroStrategy, to emphasize its importance.</p>   
<p>Until now, companies had to report Bitcoin at its purchase price. If Bitcoin’s value dropped, they recorded losses, but if it increased, they couldn’t reflect the gains. This led to inaccurate financial statements. Under the new rules, companies will update Bitcoin’s value in their financial reports every reporting period, showing both gains and losses based on market prices.</p>   
<p>This change is a big win for firms like MicroStrategy and Tesla, which hold significant Bitcoin reserves. It makes the reporting process smoother and gives investors, creditors, and stakeholders a clearer view of a company’s financial health, helping them assess risks and performance more effectively.</p>   [post_titles_links postid="393410"]   
<h2 class="wp-block-heading" id="h-what-s-included-and-what-s-not"><strong>What’s Included—and What’s Not</strong></h2>   
<p>The new standards apply to fungible crypto assets that meet specific criteria. However, assets like NFTs, wrapped tokens, and internally generated digital assets are excluded. This ensures the rules align more closely with traditional accounting practices while improving transparency in financial statements.</p>   
<h2 class="wp-block-heading" id="h-boosting-bitcoin-adoption"><strong>Boosting Bitcoin Adoption</strong></h2>   
<p>The ability to use fair value accounting could drive more companies to adopt Bitcoin as a reserve asset. Businesses will find it easier to manage <a href="https://coinpedia.org/price-analysis/bitcoin-at-104k-heres-why-sustaining-above-102k-is-very-important-for-the-btc-price-rally-to-reach-110k/" target="_blank" rel="noreferrer noopener">Bitcoin’s price swings</a> and provide accurate reporting.</p>   
<p>Adding to the excitement, rumors are circulating that Trump might issue an executive order on his first day in office to establish a Strategic Bitcoin Reserve. This potential move could further boost Bitcoin’s role in global finance.</p>   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]   
<p><strong>The gap between traditional financial markets and the crypto economy is shrinking, with Bitcoin increasingly recognized as a dominant financial asset.</strong> <strong>This is a win for crypto - and we're celebrating! </strong></p>

FASB Reveals Bitcoin Accounting Rules: Market Impact and Key Insights

Table of Contents

CoinPedia News

Other articles published on Dec 16, 2024

Can Bitcoin Reach $500K? The Rainbow Chart’s Latest Insights Explained

Australian Court Fines Kraken $8M Over Unauthorized Margin Lending Product

When XRP Hits $100: Things To Do To Stay Compliant When You Decide to Cash In

Bitget Secures Bitcoin Service Provider License in El Salvador

From Missed Opportunities to New Beginnings: BTFD Coin vs Peanut the Squirrel

Ripple’s RLUSD Stablecoin Could Cost You More at Launch – Here’s Why

Join our free newsletter for daily crypto updates!