The growing presence of crypto assets on corporate balance sheets is no longer experimental. It reflects a structural shift in how companies manage value and liquidity.

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Crypto assets do not clearly meet the definitions of cash, financial instruments or inventory under existing GAAP, leaving preparers to apply principles that were not designed for digitally native, continuously traded instruments.

Traditional accounting guidance had lagged behind this practice, prompting the Financial Accounting Standards Board to issue ASC 350-60 in 2023 (effective for fiscal years beginning after Dec. 15, 2024) to acknowledge crypto assets as a permanent part of corporate finance and address key gaps.

Under ASC 350-60, eligible…