The Financial Accounting Standards Board (FASB) has proposed new accounting standards for crypto assets, which would treat them more like traditional assets and improve valuation accuracy. Currently, crypto holdings are treated as "indefinite-lived intangible assets" on balance sheets, but the FASB's proposal aims to change this reporting to improve the accuracy of companies' financial statements.

The SEC also released an alert urging investors to remain cautious about investing in "crypto asset securities," alleging that many crypto assets are securities and thus, falling under the SEC's regulatory umbrella. Companies should engage experienced counsel to prepare for upcoming accounting standard changes and prepare for increased SEC enforcement action in the cryptocurrency arena.