ASU 2023-08 scope: which crypto assets get fair value, and which don't
The six tests that put a token under ASC 350-60 fair value, what falls outside, and where the FASB is taking scope next.
Under US GAAP, ASU 2023-08 is now mandatory: in-scope crypto assets are carried at fair value with changes in net income [1]. The catch is scope. A token that fails any one of six tests stays on the old cost-less-impairment model, so the same balance sheet can hold crypto on two different bases [1][2].
The six scope criteria
The FASB issued ASU 2023-08 in December 2023, creating ASC Subtopic 350-60 [1][6]. A crypto asset is in scope only if it meets all of the following [1][2]:
- It meets the US GAAP definition of an intangible asset.
- It gives the holder no enforceable rights to, or claims on, underlying goods, services or other assets.
- It is created or resides on a distributed ledger based on blockchain or similar technology.
- It is secured through cryptography.
- It is fungible.
- It is not created or issued by the reporting entity or its related parties.
In practice, native tokens such as bitcoin or ether usually pass all six. The tests that most often exclude an asset are the second (rights to an underlying), the fifth (fungibility) and the sixth (self-issued).
What usually falls outside
- Stablecoins: many give the holder a claim on underlying reserves or redemption at par, which fails the second test. Some may be financial assets rather than intangibles at all [1][2].
- Wrapped tokens: PwC's view is that the answer turns on whether the holder has an enforceable right to the underlying asset; a wrapped token with such a right is out of scope under the current text [2].
- NFTs: they are not fungible, so they fail the fifth test [1].
- Self-issued tokens: tokens created by the entity or its related parties are excluded, and Deloitte notes this stays true even if the entity later buys them back from third parties [1].
Each of these needs a facts-and-terms review. Labels such as stablecoin or wrapped token do not decide scope; the rights the holder actually has do.
What happens to out-of-scope assets
An asset outside Subtopic 350-60 keeps its previous accounting. For crypto assets that are intangibles, that is generally the indefinite-lived intangible model: carried at cost, written down for impairment, with no write-up when prices recover [1][2]. Where the asset meets the definition of a financial asset, financial instrument guidance may apply instead [2]. This mixed model is why scope conclusions should be documented token by token.
What changes for in-scope assets
- Measurement at fair value each reporting period under ASC 820, with changes in net income [1].
- Presentation of in-scope crypto separately from other intangible assets on the balance sheet, and of fair value changes separately in net income [1].
- Disclosures including name, cost basis, fair value and units for each significant holding, an annual rollforward, the cost-basis method used, and contractually restricted holdings [1].
Effective dates and transition
The ASU is effective for all entities for fiscal years beginning after 15 December 2024, including interim periods. Early adoption was allowed, but only as of the start of a fiscal year and for the whole ASU. Adoption is through a cumulative-effect adjustment to opening retained earnings; restating prior periods is not permitted [1]. For a calendar-year company, 2025 was the first mandatory year.
Where scope is heading
In late 2025 the FASB added two crypto projects: one on stablecoins as cash equivalents, and one on transfers of crypto assets that would also widen Subtopic 350-60 to cover wrapped and receipt tokens [3]. The Board tentatively agreed to bring in tokens that give the holder a right to receive another in-scope crypto asset, and said transfers of digital assets that are financial assets fall under ASC 860 [4]. At its 19 August 2026 meeting the Board directed staff to draft a proposed update for written ballot [5]. As of October 2026, none of these changes is final, so current scope conclusions still stand; check the FASB site for the exposure draft and its comment deadline.
What to do
- List every token held and run each one through the six criteria, recording the reason for any exclusion.
- Read stablecoin and wrapped-token terms for redemption or claim rights rather than relying on the asset's label.
- Track related-party issuance so self-issued tokens stay on the cost model.
- Keep cost basis per unit even for fair-value assets; the disclosures still require it.
- Follow the FASB transfers project, since wrapped and receipt tokens may move into scope.
This is general information, not accounting advice.
Sources
- Heads Up — FASB Issues Final Standard on Crypto Assets (December 15, 2023) (Deloitte (DART))
- 2.4 Crypto assets accounted for in accordance with ASC 350-60 (PwC Viewpoint)
- FASB ready to tackle crypto, other projects (KPMG)
- FASB makes progress on crypto asset transfers project (KPMG)
- FASB Holds August 19 Meeting (Deloitte (DART))
- ASU 2023-08, Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60) (FASB)
General information for finance teams, current as of publication. Not legal, tax or accounting advice.