INSIGHT

FASB Addresses Gaps in Crypto Asset Accounting 

Javier Salinas, Ryan Davis • December 5, 2025

Industries: Blockchain & Digital Assets

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The Financial Accounting Standards Board (FASB) voted at its November 19, 2025 meeting to add two crypto-related projects to its technical agenda. The decision responds to feedback from companies experiencing inconsistent accounting practices for digital asset transfers and emerging token types. 

If your business holds cryptocurrency or engages in digital asset transactions, these developments will impact your financial reporting in the months ahead. 

Two New Projects on the Agenda 

FASB will tackle two specific areas where current guidance needs clarification: 

Expanding coverage for wrapped and receipt tokens. FASB plans to revise the scope of Subtopic 350-60 to include crypto assets that provide the holder with a right to receive another crypto asset. Currently, these instruments lack clear accounting treatment, leading companies to apply various sources of guidance. 

Clarifying when you can derecognize transferred crypto assets. FASB will develop guidance to help you determine when control of a crypto asset has been transferred—a question that arises in staking, lending, and liquidity pool arrangements where you may retain contractual rights to reclaim the asset. 

The Gap in Current Standards 

ASU 2023-08 established fair value accounting for certain crypto assets, but it didn’t address the full range of transactions companies now engage in. Wrapped tokens that represent other crypto assets, and arrangements where you transfer crypto while retaining reclaim rights, fall outside the current framework. 

This has created inconsistency in how organizations account for similar transactions. 

Three Potential Approaches for Derecognition Guidance 

FASB is considering several alternatives for the derecognition project: 

• Codifying specific crypto lending scenarios based on existing AICPA practice guidance 
• Applying existing control guidance from revenue recognition standards (Topic 606) while clarifying how repurchase provisions should be evaluated 
• Developing crypto-specific derecognition criteria tailored to digital asset characteristics 

FASB indicated it will research the second approach first—leveraging existing accounting frameworks rather than creating entirely new rules. 

Learn more about our Blockchain and Digital Assets Consulting Services

What Your Organization Should Consider 

Review Your Current Practices 

As FASB staff conduct additional research, assess your digital asset holdings and identify transactions that involve: 

• Wrapped tokens or receipt tokens 
• Staking arrangements with return provisions
• Crypto lending or borrowing activities 
• Any transfer where you retain contractual rights to reclaim assets 

Document Your Approach 

Maintain clear records of how you’re currently accounting for these transactions. This documentation will help you evaluate changes needed once final standards are issued. 

Monitor Developments 

FASB staff will perform additional research and outreach before bringing these topics back to a future board meeting. Organizations that track these developments will be better positioned to implement changes when new guidance becomes effective. 

How BPM Can Help 

At BPM, we work with businesses to develop accounting policies for crypto holdings and transactions that are consistent with U.S. GAAP. 

Whether you need help evaluating how new FASB guidance might affect your financial statements or implementing current crypto accounting standards, our team is here to help. 

Contact us today to discuss your crypto accounting questions and how we can support your financial reporting needs.