U.S. Accounting Chief Targets Crypto Transfers: What Will It Mean for Your Balance Sheet?

The Financial Accounting Standards Board (FASB) is advancing efforts to modernize corporate crypto reporting, focusing on the opaque area of digital asset transfers. A new project added to FASB's technical agenda aims to clarify how businesses should account for moving cryptocurrencies between wallets, custodians, or blockchain networks—and when those assets should be removed from balance sheets.

Current practices remain fragmented as companies increasingly adopt digital wallets and blockchain payment systems without standardized accounting rules. The initiative specifically addresses "inconsistent and non-intuitive" reporting stemming from the lack of clear derecognition guidance—the criteria for determining when an asset is no longer a company's liability.

FASB is considering whether to expand its 2023 digital asset accounting standard (ASU 2023-08) or introduce new derecognition rules. The MOVE follows mounting pressure from auditors and corporations struggling to align crypto transactions with traditional financial reporting frameworks.