The Financial Accounting Standards Board (FASB), a standard-setting body that sets out to establish generally accepted accounting principles within the United States, has come out and stated that no crypto rules are needed because they expect cryptocurrencies to be gone in 5 years.
Whut?!? Accounting oversight board FASB says no crypto rules needed b/c "it expects cryptocurrency to be gone in 5 years" (h/t @josh_blockchain ) https://t.co/DoW3QTEi8I
— Jeff Roberts (@jeffjohnroberts) June 4, 2019
The FASB Is Negligent Towards Cryptocurrencies
The FASB’s stance on cryptocurrencies came out as the California Society of CPAs is pushing for clarity in accounting and disclosure rules regarding cryptocurrencies.
According to CalCPA, which is made up of 54 committee members, they have concerns about the divergence in reporting methods by companies dealing with cryptocurrencies on their financial statements.
There is a lot of accounting confusion in regards to digital assets, and yet the FASB is failing to address this problem.
As reported by CoinDesk on June 4, Nancy Rix, Chair of CalCPA’s accounting principles and assurance services committee, sent a letter to the FASB stating:
“We believe the usage of cryptocurrencies will not diminish over time and will continue to expand in both volume and new fields of application. We anticipate it will not be long before major public companies start using cryptocurrencies, as illustrated by JP Morgan’s decision to issue JPM Coin in February 2019.”
All in all, the FASB’s negligent approach to establishing clear accounting standards for cryptocurrencies harms both consumers and businesses. This is a serious problem that needs to be addressed, and yet it doesn’t appear to be of any importance to the FASB.
What’s it going to take for the FASB to realize that cryptocurrencies are not going anywhere and that accounting standards need to be set for businesses? Let us know what you think in the comment section below.
