FASB Approves New Crypto Accounting Rules, Paving Way for Wider Corporate Adoption

FASB approved mark to market accounting for crypto assets held by companies like Microstrategy and Tesla.

Prior rules forced companies to declare losses when crypto prices fell but not gains when prices rose.

New rule puts crypto in separate digital asset category where gains/losses are marked to market.

Rule change in 2025 but companies can adopt early; has big implications for corporate crypto adoption.

Expected SEC approval of Bitcoin spot ETF plus accounting change could substantially grow crypto market cap.