The US Financial Accounting Standards Board (FASB) has approved mark to market accounting for corporations and businesses holding crypto digital assets, allowing them to declare gains and losses based on the acquisition price. Previously, companies like Microstrategy and Tesla had to file crypto digital assets as intangible assets, resulting in losses when their value decreased but no gains when their value increased. The change is expected to encourage adoption of Bitcoin and other cryptocurrencies by institutional clients, including corporations, family offices, sovereign wealth, and hedge funds. The FASB announcement coincides with the impending SEC approval of a Bitcoin spot ETF, which will provide institutional buyers with the protections of the law.
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