US Federal Accounting Standards Advisory Committee to Treat Seized Crypto as ‘Non-Monetary Property’

The Federal Accounting Standards Advisory Board (FASAB) recently issued a Technical Bulletin (TB) clarifying the accounting and reporting standards for seized and confiscated digital assets. It stated that seized crypto assets should be considered "nonmonetary property" and central bank digital currencies (CBDCs) should be considered monetary instruments. FASAB stated that cryptocurrencies "generally do not have all the characteristics of currencies," emphasizing that they "cannot effectively serve as units of account, mediums of exchange, or means of storing value." The announcement further recommends that reporting entities use "publicly observable and active markets for specific digital assets" to determine the market value of seized and confiscated digital assets, and points out that management should exercise judgment in selecting the most appropriate valuation market. Note: FASAB is responsible for developing and issuing accounting standards for the U.S. government. (Bitcoin.com)