The Financial Accounting Standards Board is tackling cryptocurrency accounting challenges that have plagued institutional investors for years. Two major digital asset projects on its 2026 technical agenda could finally deliver the clarity mainstream financial institutions have been demanding.

A New Era Of Transparency Began In 2024

The accounting profession’s approach to digital assets underwent a major transformation when FASB released Accounting Standards Update 2023-08 back in December 2023. Taking effect for fiscal years starting after December 15, 2024, this guidance introduced fair value measurement requirements for cryptocurrency holdings, with valuation adjustments hitting the income statement each reporting period.

Before this change, companies classified digital currencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) as intangible assets with indefinite useful lives, displaying holdings at original purchase price and marking them down only when impairment occurred. Price appreciation went unrecorded until sale.

Fair value accounting changes everything. Companies must now report cryptocurrency at current market valuations quarterly. When Bitcoin holdings jump from $10 million to $12 million, that $2 million increase appears immediately. This transparency is helping drive institutional adoption across corporate treasuries.

Two Critical Questions Face The Board

FASB’s 2026 work plan addresses pressing concerns that emerged after stakeholders began implementing the 2023 standard. The first project examines whether specific stablecoins should receive classification as cash equivalents under generally accepted accounting principles. The second focuses on how entities should handle transfers involving digital assets, especially wrapped tokens and receipt tokens generated through staking.

Determining stablecoin treatment has massive practical consequences. Assets classified as cash equivalents get streamlined balance sheet presentation and avoid ongoing fair value adjustments. Should major stablecoins such as Tether (CRYPTO: USDT) or USD Coin (CRYPTO: USDC) earn this designation, corporations could integrate them into treasury operations without complicated valuation protocols.

The transfer accounting initiative tackles questions about when ownership actually changes hands in wrapped token transactions and staking protocols. The board added the stablecoin question to its technical agenda last August and followed with the transfer accounting project in November, demonstrating how quickly market needs are evolving.

Policy Changes Created Momentum

Throughout 2025, policymakers dismantled several obstacles that had discouraged financial institutions from offering crypto services. The Securities and Exchange Commission took a major step in January 2025 by withdrawing Staff Accounting Bulletin 121 through its replacement, SAB 122. The original bulletin had forced banks holding customer cryptocurrency to list the entire value as both an asset and a matching liability on their balance sheets, requiring institutions to hold capital reserves against digital assets they didn’t actually own.

SAB 122 eliminated this approach, allowing firms to apply conventional loss contingency frameworks instead. On that same January day, President Donald Trump issued an executive order creating a Strategic Bitcoin Reserve alongside a broader Digital Asset Stockpile. The reserve consolidated more than 200,000 Bitcoin under Treasury management, effectively treating the cryptocurrency as a sovereign reserve asset.

Congress added its own contribution last July by enacting the GENIUS Act, which established federal oversight for stablecoin issuers. The legislation mandates full backing with U.S. dollars or highly liquid equivalents, requires published reserve audits, and imposes anti money laundering compliance.

Corporations Are Moving Fast

These regulatory and accounting developments coincided with explosive growth in corporate digital asset adoption during 2025. MicroStrategy Incorporated (NASDAQ:MSTR), the pioneer of corporate Bitcoin treasury strategies, now holds 672,497 Bitcoin worth approximately $58 billion as of December 2025, acquired for a total of $50.44 billion.

Traditional Wall Street players joined the movement. BlackRock Inc. (NYSE:BLK) brought its iShares Bitcoin Trust ETF to market, accumulating substantial assets during its first year. Data shows over 160 institutional holders now collectively maintain Bitcoin treasuries worth approximately $150 billion.

When Coinbase and EY Parthenon surveyed 352 institutional investors, they found 83% planning to increase crypto allocations in 2025, with 59% targeting positions exceeding 5% of total assets under management.

The Real World Impact Of Better Standards

Clear accounting rules enable meaningful comparisons between companies, reduce reporting complexity, and eliminate objections that risk averse finance teams use to reject digital asset proposals.

Picture a corporate treasurer weighing whether to allocate 2% of cash reserves to Bitcoin. Under the previous framework, every market decline triggered impairment charges while rallies produced no reportable benefit, making positions appear excessively risky on paper.

Fair value treatment creates symmetry by running both gains and losses through the income statement. While some executives dislike earnings volatility, the approach accurately captures asset price fluctuations.

The stablecoin classification question carries practical weight because the answer determines whether companies can deploy these digital dollars for routine business operations. If regulators grant cash equivalent status to leading stablecoins, firms could settle vendor invoices in USDC or park working capital in digital dollars with accounting simplicity comparable to money market funds.

Implementation Will Take Time

Adding projects to FASB’s technical agenda starts a lengthy process. The board will deliberate both crypto initiatives during 2026, with final guidance likely not taking effect until 2027 or 2028.

Companies aren’t waiting for complete guidance. Infrastructure has matured with major institutions offering custody services, audit ready reporting platforms, and institutional grade staking.

The combination of improving standards, supportive regulation, and operational maturity is setting the stage for accelerated institutional adoption. FASB’s 2026 agenda signals that accountants recognize this evolution and plan to deliver the frameworks institutions need.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.