FASB crypto transfers project: wrapped tokens in, lent crypto stays on books
The FASB has agreed the shape of a proposal on wrapped tokens and crypto lending, but the exposure draft is not out yet. Stablecoins are a separate track.
Since our ASU 2023-08 scope explainer, the FASB has finished its main deliberations on how to account for transfers of crypto assets and agreed to put out a proposal. As of 16 October 2026 that transfers proposal has not been published as far as we can confirm; FASB staff now expect it in the first quarter of 2027 [2]. A separate FASB proposal on stablecoins as cash equivalents was issued in August and is open for comment until 19 November 2026 [2][5].
For finance teams, nothing has changed in the rules you apply today. These are tentative Board decisions, and they only become final after a written ballot on a final standard [1]. But they show clearly where US GAAP is heading for wrapped tokens and crypto lending, so they are worth planning around.
What the Board has decided so far
- Wrapped and receipt tokens come into scope. In April 2026 the Board voted 7-0 to widen ASC 350-60 so it covers a crypto asset that gives the holder a right to receive another crypto asset that is itself in scope, with wrapped tokens as the main example [1][2]. Under ASU 2023-08 as issued, a token that carries an enforceable right to an underlying asset falls outside the fair value model [2].
- Lent crypto stays on the lender's balance sheet. For crypto intangible assets transferred in a lending arrangement, the lender would not derecognize them. Instead it would reclassify them as encumbered and keep measuring them at fair value, with that fair value reflecting the credit risk of the borrower holding the asset during the loan [2][3].
- Other transfers follow the revenue control model. For transfers that are not loans, the ASC 606 control guidance applies, assessed mainly from the transferring entity's side, and certain repurchase rights would not by themselves block derecognition [3][4].
- Crypto financial assets go to ASC 860. Any digital asset transfer where the asset meets the definition of a financial asset would be accounted for under the transfers and servicing guidance in ASC 860, which can include some stablecoins [3][4].
- Disclosure clarifications. Wrapped tokens, if significant, would be shown separately from other significant holdings, and the Board clarified the existing requirements on significant holdings, contractual sale restrictions and the activity rollforward [1][3][4].
At its 19 August 2026 meeting the Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot, with a modified transition approach and early adoption permitted [3][4]. FASB staff materials prepared for an October 2026 advisory forum say the proposal is expected in Q1 2027 with a 60-day comment period [2]. Some secondary commentary has described the transfers proposal as already issued; we could not find it on FASB or Big Four channels, and the FASB's own October material treats it as still to come.
The separate stablecoin proposal
On 18 August 2026 the FASB issued a proposed update on cash equivalents and the evaluation of certain digital assets, with comments due 19 November 2026 [5][6]. It does not change the definition of a cash equivalent. It adds examples showing when a digital asset such as a stablecoin can qualify, pointing to three features: an on-demand contractual right to redeem for cash, a direct redemption right with the issuer for known amounts of cash, and issuer reserves held in a segregated account at least one-to-one in short-term, highly liquid assets [2][5].
It would also require every entity that reports cash equivalents, crypto holder or not, to disclose the significant components and amounts each year [5][6]. The effective date will be set after feedback, with early adoption permitted [6].
What it means in practice
If the transfers proposal goes ahead as described, tokens such as wrapped bitcoin or wrapped ether that today sit outside ASC 350-60 could move to fair value through net income. Lending desks and treasury teams that lend crypto would keep the asset on the books, present it as encumbered, and need a view on borrower credit risk in the fair value. Exactly which tokens qualify, and how the credit adjustment is measured, will only be clear from the proposal text.
What to do
- List every wrapped or receipt token you hold and note which underlying asset each one gives a right to, and whether that underlying is in ASC 350-60 scope today.
- For crypto you lend, record the counterparty, terms and collateral per loan so an encumbered classification and a credit adjustment could be supported later.
- Read the stablecoin proposal against your own stablecoin holdings and redemption arrangements, and consider commenting before 19 November 2026.
- Keep applying current guidance until a final standard is issued, and watch the FASB site for the transfers exposure draft in early 2027.
Sources
- Minutes of the April 15, 2026 Board Meeting: Accounting for Transfers of Crypto Assets (FASB)
- Accounting for Crypto Assets: Feedback and Standard-Setting Updates (ASAF, October 2026, Agenda Paper 7B) (FASB staff via IFRS Foundation)
- FASB makes progress on crypto asset transfers project (KPMG)
- FASB Holds August 19 Meeting (Deloitte DART)
- Heads Up: FASB Proposes Enhancements to Disclosures About Cash Equivalents and Clarifications to the Evaluation of Certain Digital Assets (Deloitte DART)
- FASB issues proposed ASU on cash equivalents (KPMG)
General information for finance teams, current as of publication. Not legal, tax or accounting advice.