Donald Trump Bitcoin Reserve Plan Aligns with FASB’s New Crypto Accounting Rules

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The U.S. Financial Accounting Standards Board (FASB) has introduced a groundbreaking update that’s set to change how companies account for Bitcoin and other eligible crypto assets. Starting today, businesses can measure their Bitcoin holdings at current market prices, making financial reporting more accurate and transparent. Starting fully in 2025, the change could drive more firms to adopt Bitcoin as a reserve asset.

Following the two breaking news, Bitcoin surged above $105,000 today, adding U.S. President-elect Donald Trump’s comments about creating a strategic Bitcoin reserve, similar to the country’s oil reserve. The cryptocurrency hit a high of $105,142 before settling at $104,609. It has seen a 55% rise post-election, with a whooping trading volume of $62B. 

What’s Changing?

This update, highlighted by Pete Rizzo of Bitcoin Magazine in a post on X, reflects a significant shift in how companies report their cryptocurrency holdings. Rizzo referenced a prior post by Michael Saylor, co-founder of MicroStrategy, to emphasize the importance of this change.

Until now, companies recorded Bitcoin at its purchase price. If the value dropped, losses were reported, but if it went up, the gains weren’t included. This created a major gap in how companies reflected their true financial standing. With the new rules, Bitcoin’s value will now be updated in financial statements every reporting period, showing both profits and losses based on market prices.

This change makes life easier for companies holding Bitcoin as a reserve asset. Big names like MicroStrategy and Tesla, which are known for their Bitcoin investments, will now have a smoother reporting process. Investors, creditors, and stakeholders will also get a clearer picture of a company’s financial health, making it easier to assess risks and performance.

Who Benefits?

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. For companies, this means better alignment with traditional accounting practices and greater transparency in their financial statements.

A Big Win for Bitcoin

This move is expected to encourage more companies to adopt Bitcoin as a strategic reserve asset. With fair value accounting in place, businesses can better handle Bitcoin’s price swings while staying transparent about their holdings. This milestone comes as the crypto market buzzes with speculation about former President Donald Trump’s potential plan for a Strategic Bitcoin Reserve, rumored to be enacted through an executive order on his first day after taking charge in January.

The gap between traditional markets and the crypto economy is narrowing, and Bitcoin’s position as a dominant financial asset is stronger than ever. This new accounting rule isn’t just a win for companies—it’s a win for the entire crypto industry.