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US Government Releases Position on Cryptocurrency Status in the Country

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A recent position regarding the state of cryptocurrencies in the US has been released by the administration. This is a statement from FASAB.

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According to a statement released by the US Federal Accounting Standards Advisory Board (FASAB), crypto assets that have been seized should be handled as “non-monetary property.”

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This is a component of a larger initiative to harmonize the reporting and accounting of digital assets that have been taken into custody.

The U.S. government’s accounting standards are developed and issued by FASAB, which on Friday released a Technical Bulletin (TB) that provides clarification on these standards. The bulletin stressed that cryptocurrencies are “not effective as a unit of accounting, medium of exchange, or store of value” and “typically do not have all the characteristics of monetary assets.”

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The bulletin also states that official digital forms of government-backed money, known as central bank digital currencies (CBDCs), “are typically recognized as serving essentially the same purposes as physical cash.” Thus, the released paper states that reporting organizations ought to handle CBDCs like currency.

However, the FASAB states that all other digital assets ought to be regarded as non-monetary property, such as cryptoassets, cryptocurrencies, stablecoins, non-fungible tokens (NFTs), security tokens, and privacy coins.

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According to the bulletin, digital assets “are not considered fiat” and “typically do not have all the characteristics of monetary assets,” with the exception of CBDCs.

According to the bulletin, “cryptoassets lack the same features that give fiat money its power and legitimacy, such as being backed by the institutions and legal system of a sovereign nation, and as a result are not an effective means of exchange because there are no institutions that accept them as a form of payment.”

Additionally, he notes that because of the considerable changes in market value, cryptoassets do not constitute the reliable store of value required to function as money.

The Bulletin recommends that reporting organizations use “a publicly observable active market for a particular digital asset” to ascertain the market value of digital assets that have been seized and foreclosed. CRYPTOCASTER® - DECENTRALIZED FREEDOM!


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