The Financial Accounting Standards Board unanimously approved a new project on Wednesday to develop accounting standards for transfers of crypto assets, including wrapped tokens. This marks the third such initiative on digital assets for the board's agenda. The move responds to stakeholder calls for clearer guidance amid evolving cryptocurrency practices.
In a 7-0 vote on Wednesday, the Financial Accounting Standards Board (FASB) added a high-priority project to its technical agenda focused on how companies should account for transfers of crypto assets, such as wrapped tokens and receipt tokens. This initiative paves the way for updates to generally accepted accounting principles (GAAP) and may expand the scope of FASB's 2023 guidance, "Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60)." That earlier standard introduced fair value accounting for qualifying crypto assets like Bitcoin, shifting from prior impairment-only methods for intangible assets, but it excluded items like nonfungible tokens (NFTs) and required assets to meet criteria including fungibility, cryptographic security, and residence on a blockchain or similar distributed ledger.
Board members reflected on the evolution of crypto standards during the meeting. "I supported our crypto accounting because I felt like whether you’re a crypto skeptic or crypto proponent, what we provided was accounting that provided better economics and provided full transparency and I think…we can continue to move in that direction, no matter how people view cryptocurrencies today, with adding this project," said Board Member Frederick Cannon.
The decision follows stakeholder feedback from sources including FASB's 2025 Invitation to Comment, the Agenda Consultation, recommendations by the President’s Working Group on Digital Asset Markets, and a formal request from the Crypto Council for Innovation. It builds on recent actions, such as last month's project on stablecoin accounting to consider them as cash equivalents.
Nik Fahrer, a CPA and director at Forvis Mazars who leads its blockchain and digital assets practice, noted the significance: "Finance and accounting leaders should view FASB’s vote of approval to take on this project as a sign that standard setters are seeking to understand the nuances associated with crypto assets given the rise in demand for clarity." He highlighted uncertainties for wrapped tokens, which represent other crypto assets, and anticipated further guidance as innovations emerge quickly.