FASB's Accounting Update Set for December 2024
Shifting our focus to bitcoin, the strong post FOMC reaction from risk markets was aided beforehand with news of the Financial Accounting Standards Board (FASB) officially changing how bitcoin is accounted for and disclosed, starting December 15, 2024. This update, a response to widespread demand, aims to make financial reporting on crypto assets more transparent and accurately reflective of their economic value. It will require crypto assets, including bitcoin, to be measured at fair value each reporting period, with any changes affecting net income. Additionally, there’s an emphasis on clearer disclosure about significant holdings and contractual restrictions. Early adoption is permitted, offering flexibility for entities preparing to potentially include crypto assets on their balance sheets. Previously, many companies were hesitant to add bitcoin due to its classification as an intangible asset, which meant that only unrealized losses, and not unrealized gains, were factored into quarterly earnings.
Podcast of the Week
E029: Shaping Bitcoin Policy with Lee Bratcher
This week’s episode of The Last Trade features Lee Bratcher from the Texas Blockchain Council discussing the challenges and work being conducted around bitcoin regulation. The conversation moves to discussing the Treasury Department’s proposal for nodes and mining pools to comply with the Bank Secrecy Act, before highlights Texas’ influence on policy-making due to its economic weight, particularly its role in building a more robust electricity grid. The episode also explores grassroots bitcoin politics, emphasizing local political engagement and the impact of politicians like Senator Cruz and RFK on the perception of bitcoin.
Don’t miss the full discussion — check out the entire episode here.
Closing Note
Wrapping up this week’s digest, Onramp Bitcoin invites you to explore our offerings on our website.
With an industry-leading multi-party custody solution, Onramp allows Bitcoin withdrawals without triggering a taxable event. Onramp stands as an optimal solution for HNWI and institutions seeking Bitcoin exposure prior to transitioning to self-custody.
If Onramp’s offerings align with your needs, or those of someone you know, feel free to schedule a chat with us here.
Onward and Upward,
Dylan LeClair
