Prominent Bitcoin (BTC) crusader and CEO of MicroStrategy, Michael Saylor has taken to his official Twitter account to welcome the Financial Accounting Standards Board or otherwise known as FASB in reviewing the current interpretation of virtual currencies as intangible assets.
The latter has long maintained a strong stance on the interpretation of digital assets, most especially BTC and Ethereum (ETH) as a financial instrument that does not match the class of fiat currency, owing to their volatile market price nature and the insecurity of the blockchain sphere at large.
This stance has made it difficult for the asset class to reflect in the balance sheet of most private companies except Tesla, MicroStrategy, and Block, financial services, and digitized payment companies.
The accounting regulator, however, commenced research in December last year, after many requests from government institutions and the public, inaugurating a team to study virtual currencies alongside possible universally approved methods to account for them in the balance sheet of private companies.
While the results of the votes on final decisions are yet to be made public by FASB, it seemed Michael Saylor was following the proceedings live and has some good news to share.
He tweeted on his Twitter handle, saying “congratulations to the #Bitcoin community. This morning, by unanimous vote of 7-0, the Financial Accounting Standards Board (FASB) agreed to add a project to review Accounting for Exchange-Traded Digital Assets and Commodities.”
Congratulations to the #Bitcoin community. This morning, by unanimous vote of 7-0, the Financial Accounting Standards Board (FASB) agreed to add a project to review Accounting for Exchange-Traded Digital Assets and Commodities.
— Michael Saylor⚡️ (@saylor) May 11, 2022
If the outcome of the review on Accounting for Exchange-Traded Digital Assets and Commodities (as usually referred to by FASB) pulls through and turns out to be positive, private companies will hop on the recent development and ensure that their BTC and ETH holdings reflect on their balance sheets, with bitcoin appearing as a tangible asset.
Replying to the tweet of Saylor, the Director of Growth Marketing at Kraken, Dan Held perceives the news as “amazing”. He added by saying, “one step closer to making it easier for corporates to own Bitcoin on their balance sheet and account for it in a cogent manner.”
A sizable number of Michael Saylor’s wealth is stored in bitcoin, via one of his prominent firms, MicroStrategy, which provides business intelligence services. The company currently holds a total pot of 129,218 BTC.