How will the new rules affect the liquidity of the cryptocurrency market
Today, Bloomberg reported that the Financial Accounting Standards Board (FASB) has issued new rules that will require companies to measure Bitcoin and other cryptocurrencies at fair value.
The new rules, which are expected to take effect in 2021, will require companies to measure cryptocurrencies at fair value, which is defined as the price at which an asset could be exchanged in a current transaction between willing parties. This is a significant change from the current accounting standards, which require companies to measure cryptocurrencies at cost.
The new rules are expected to have a significant impact on the cryptocurrency industry, as companies will now be required to accurately measure the value of their holdings. This could lead to increased transparency and better reporting of cryptocurrency holdings, which could help to increase investor confidence in the industry.
The new rules could also have a positive impact on the cryptocurrency market, as companies may be more willing to invest in cryptocurrencies if they can accurately measure their value. This could lead to increased liquidity in the market, which could help to drive prices higher.
Overall, the new FASB rules are a positive development for the cryptocurrency industry, as they will help to increase transparency and investor confidence. This could lead to increased investment in the industry, which could help to drive prices higher.
JUST IN: 🟠 Bitcoin and crypto to be measured at fair value under new FASB rules — Bloomberg 🙌