The Financial Accounting Standards Board (FASB) is excluding non-fungible tokens (NFTs) and certain stablecoins from its cryptocurrency accounting review, the Wall Street Journal reported.

On Wednesday, the board described its criteria for crypto assets that would be covered by a long-awaited rule for companies to account for and disclose their holdings of digital assets.

FASB did not name specific crypto assets that would be excluded from the rule. But it said the digital assets addressed by the rule would include those that are intangible, don’t carry contractual rights to cash flows or ownership of goods and services, and those that are fungible, according to the Journal. NFTs are by their very nature non-fungible and may carry rights to underlying assets, while some stablecoins are tangible assets.

FASB board member Susan Cosper told the Journal that not many companies had invested in NFTs yet. “It’s not pervasive or material at this juncture,” she said, adding “it’s certainly something that we can focus on later if need be.”

FASB did not discuss reporting standards for companies holding cryptocurrencies like bitcoin on their balance sheets. At present, companies must record an unrealized loss if the value of their holdings drop, even if the companies don’t sell the assets. But they do not have to report unrealized gains. Similar rules don’t exist for companies holding other assets. The crypto industry is hoping FASB will update its recommendations to address this disparity.

UPDATE (August 31, 21:00 UTC): Added background in last paragraph.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Read More