The Financial Accounting Standards Board (FASB), a financial accounting standards body in the US, is reportedly considering whether to undertake a new initiative on digital currencies.
According to Reuters, the FASB – which sets accounting standards for publicly traded US firms – hasn't yet decided if it will develop new guidelines for companies dealing with bitcoin and other cryptocurrencies. However, the non-profit is apparently assessing whether it should begin that process following a request from the Washington, DC-based Chamber of Digital Commerce – a trade organization for companies and groups working in the digital currency and blockchain space.
In a letter to the board, dated June 8, CDC founder and president Perianne Boring argued that the lack of standards is creating a barrier for both investors and entrepreneurs:
"The absence of accounting standards for digital currencies is a mission critical issue for companies seeking to invest and innovate in this exciting technology frontier and may hold back economic growth in the United States."
If it does undertake the initiative, the FASB would not be alone among the world's accounting standards groups who have begun developing new frameworks. Among those is the Australian Accounting Standards Board, which in November argued for global action in this area.
Further, a group of accounting firms including PwC, Deloitte and EY, among others, formed a new coalition last year aimed at promoting new standards for digital currency. The CDC, too, has previously launched an advocacy effort, dubbed the Digital Assets Accounting Coalition.
Accounting image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected]/* */.
Chamber of Digital CommerceUSAccounting
Japanese Billionaire: ICOs 'Democratize Venture Financing'
A Japanese billionaire and venture capitalist said this week that he believes initial coin offerings (ICOs) will become a significant source of funding for startups in the future.
Speaking with CNB
China Should Issue State-Backed Digital Currency ‘As Soon as Possible’: PBoC Researcher
A prominent Chinese researcher has urged the People’s Bank of China (PBoC)–the country’s central bank–to adopt a state-backed digital currency “as soon as possible.”
Huang Zhen, a researcher at Cen
Why China’s Crackdown on Bitcoin is Good for the Industry
Over the past week, many traders, analysts, and investors in the finance and cryptocurrency sectors have reacted to the crackdown on bitcoin by the Chinese government positively.
Investors such as
Ray Dalio Confirms Bitcoin is in a Bubble yet it may Become a Currency
A lot of self-professed financial experts do not like Bitcoin. That is not surprising, as promoting cryptocurrency would go against their own interests. Ray Dalio is the latest person to call
Ethereum, Bitcoin Prices Dip in Minor Market Pullback
The crypto market recovery stalled on Wednesday with the vast majority of coins posting minor pullbacks. The ethereum and bitcoin prices were at the head of the retreat, leaving neither able to hold a
Wall Street Journal Argues Bitcoin Is “Probably worth Zero”, Joins Obituary List
One of the Wall Street Journal’s most read articles of the day implies that bitcoin’s volatility reveals that the cryptocurrency is “probably worth zero.” The author of the piece starts by stating tha
Bitcoin Price Watch; Here’s What We’re Looking At Tonight
Wednesday has been a bit of a strange day in the bitcoin space so far. We are about to call time on the European session and the bitcoin price has spent the last hour or so in a phase of what looks
China's IT Ministry Backs New Blockchain Research Lab
Regardless of its recent crackdown on bitcoin exchanges and initial coin offerings (ICOs), China's government still appears committed to the potential of blockchain in other areas.
According to a r