Crypto accounting under US GAAP
US GAAP changed fundamentally for crypto: under ASU 2023-08, in-scope crypto is now measured at fair value, with gains and losses flowing through net income every period — replacing the old impairment-only model that only ever wrote values down. This page explains what changed and how CryptaCount applies it.
General information, not accounting advice. Confirm the right treatment for your facts with your auditor or advisor.
What changed
ASU 2023-08 (codified in ASC 350-60) is the FASB's first dedicated crypto standard. For in-scope crypto assets, it requires:
- Fair-value measurement each reporting period (under ASC 820),
- with gains and losses recognised in net income — both increases and decreases, whether or not you sold,
- and separate presentation of crypto on the balance sheet and of its remeasurement in the income statement, plus added disclosures.
This replaced the old model, where crypto (an indefinite-lived intangible) was carried at cost less impairment — impairments were permanent, gains were only recognised on disposal, and recoveries couldn't be written back up.
Effective date
ASU 2023-08 is effective for fiscal years beginning after 15 December 2024 (so 2025 for calendar-year entities), including interim periods, with early adoption permitted. It applies to all entities — public and private companies, not-for-profits, and others — that hold in-scope crypto. So for most reporting now, it's the current standard.
What's in scope
The standard uses narrow criteria — broadly, fungible crypto assets that are intangible, created on a distributed ledger, secured by cryptography, and not issued by the reporting entity. That deliberately excludes NFTs (non-fungible) and certain wrapped or issuer-linked tokens, so not every digital asset qualifies — which assets are in scope still has to be assessed.
Why it matters
Mark-to-market means crypto now introduces earnings volatility that wasn't there under the old rules — finance teams need systems that can value holdings at each reporting date and post the remeasurement correctly, with evidence the auditors will accept. Crypto accounting under IFRS →
How CryptaCount helps with US GAAP
- Measures in-scope crypto at fair value each period under a fair-value basis
- Posts remeasurement gains and losses to your ledger, presented separately
- Handles the scope assessment inputs (fungibility, asset type) so the right assets are measured the right way
- Keeps a complete, traceable trail for your auditors
Compliance & reporting → · The crypto sub-ledger →
General information, not accounting advice. Verify with your auditor or advisor.
FAQ
Under ASU 2023-08 (ASC 350-60), in-scope crypto is measured at fair value each period, with gains and losses recognised in net income — replacing the old cost-less-impairment model.
For fiscal years beginning after 15 December 2024 (2025 for calendar-year entities), including interim periods, with early adoption permitted. It applies to all entities.
No. The scope is narrow and fungibility-based, which excludes NFTs and certain issuer-linked tokens. Which assets qualify must be assessed.
Previously crypto was carried at cost and only written down for impairment (permanently), with gains only on sale. Now both gains and losses are recognised each period at fair value.
Yes. It measures in-scope crypto at fair value each period and posts the remeasurement gains and losses to your ledger, with a full audit trail.