US Federal Accounting Standards Advisory Board Clarifies Standards for Seized and Confiscated Digital Assets

According to Odaily, the US Federal Accounting Standards Advisory Board (FASAB) has recently issued a technical bulletin (TB) to clarify the accounting and reporting standards for seized and confiscated digital assets. The board stated that confiscated cryptocurrencies should be considered as 'nonmonetary property', while Central Bank Digital Currencies (CBDC) should be regarded as monetary instruments. FASAB emphasized that cryptocurrencies 'usually do not possess all the characteristics of money', highlighting that they 'cannot effectively serve as units of account, mediums of exchange, or stores of value'. The bulletin further suggested that reporting entities use the 'publicly observable active market of specific digital assets' to determine the market value of seized and confiscated digital assets. It also pointed out that management should make judgments when choosing the most suitable valuation market. FASAB is responsible for establishing and issuing accounting standards for the US government.