U.S. companies are expected to increase their adoption of Bitcoin and other cryptocurrencies following a significant change in accounting rules, which now permits them to report gains on their crypto holdings, not just losses.
The Financial Accounting Standards Board (FASB) introduced new rules, effective from December 2024, allowing companies to accurately reflect the market value of their crypto assets, including any gains, in their financial statements.
This change addresses a previous limitation where companies could only record a decrease in the value of their crypto assets, with increases in value unacknowledged until the assets were sold.
Industry experts, including Cory Klippsten, CEO of Swan Bitcoin, believe this rule change will encourage broader corporate adoption of Bitcoin as firms can now report both gains and losses, treating Bitcoin as a strategic financial asset.