Our open letter to the Board of Financial Accounting Standards: “We believe that there is a great need to improve accounting for crypto assets.”
Tl: Dr: Coinbase is actively seeking clarity around crypto accounting standards. Recently, we shared our thoughts with an important industry body, the Financial Accounting Standards Board.
On June 2, 2021, the Financial Accounting Standards Board (FASB) issued an invitation to investors, businesses, and other stakeholders to comment on future accounting standards to address their highest priority issues. As the leader in crypto space with over 68 million retail customers and 9,000 institutional clients, we see providing our input as both a privilege and a responsibility for us.
Today, we responded to the request with an open letter. Here are some highlights:
- Not being able to calculate crypto assets due to current standards does not provide useful information for our investors.
- Crypto is rapidly gaining mainstream acceptance. Over the past year, the market capitalization of total crypto assets has increased more than 5x with a total market value of more than $ 2 trillion * as of September 2021. More importantly, the invention has just begun. Now is the time to improve your accounting for crypto assets.
- We have proposed two projects to improve US standards in the calculation of crypto assets. We believe that both proposals should be added to the agenda for determining the future value of FASB:
1) To greatly improve accounting and reporting by crypto asset holders
2) Explain that special accounting guidelines for broker-dealers should also be applied to entities that create a market in digital assets.
Our goal is to increase economic freedom in the world through a sound, accessible and efficient financial system. We are taking this mission further through a constructive relationship with FASB, enabling us to collaborate on crypto accounting challenges collaboratively. Our letter is a step towards progress and providing relevant and useful accounting and reporting information to the public. As always, we look forward to an ongoing, constructive dialogue with FASB and its staff.
* Per CoinMarketCapThe total global market capitalization of crypto assets was ৫ 50 billion in September 2020, up from ২ 2 trillion by September 15, 2021.
Our open letter to the Board of Financial Accounting Standards: “We believe there is a widespread need … Originally published in the media on the Coinbase blog, where people continue the conversation by highlighting and responding to this story.