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2025 Guide for Qualifying Crypto under ASC 350-60

Published: July 07, 2025 | Bryan Joseph Alfonso

Holding crypto on your balance sheet doesn't automatically mean you can report it under ASC 350-60. The new standard offers fair value treatment, but only for assets that meet a strict set of criteria. If they don't, they must follow the older, more limited accounting rules. Feel free to reach out to Unified Global for a clearer distinction between the two.

In simpler terms, here's how you can tell the difference:

It Has to Be an Intangible Asset - To start, the crypto must be classified as an intangible asset. That means it's not physical, not cash, and doesn't represent a direct claim to another asset.
If your company holds something like a tokenized bond or a digital instrument with enforceable rights, it likely falls under different standards and needs closer inspection, something Unified Global often does when helping clients classify hybrid or atypical assets.
It Can't Guarantee Access to Other Goods or Services - Crypto must function purely as a medium of exchange, and nothing more. For instance, stablecoins like USDT or USDC are pegged to the U.S. dollar, but they don't entitle holders to redeem actual dollars from the issuer.
If the token provides a right to receive goods, services, or anything else of value, it doesn't qualify.
It Must Exist on a Blockchain (or Similar Tech) Qualifying crypto must live on a distributed ledger, typically a blockchain. It's not enough to be "digital" or "tokenized."
In-app currencies (like game gems or store credits) may seem similar but don't count if they can't be independently verified and tracked on a public or permissioned ledger.
According to a comprehensive review, blockchain-based tokens provide immutability and verifiability essential for fair value accounting models.
It Must Be Secured by Cryptography - Crypto gets its name from the cryptographic security baked into each transaction. Once confirmed, a transaction on the blockchain can't be altered or reversed.
This immutability is both a key feature and a key requirement. If a token isn't built on cryptographic protocols, it's out of scope.
It Must Be Fungible - The standard applies only to fungible digital assets, or those that are interchangeable. One Bitcoin is always equal to another Bitcoin.
The same goes for Ethereum (ETH), Cardano (ADA), or XRP (Ripple). Non-fungible tokens (NFTs), on the other hand, don't qualify under ASC 350-60 because each minted NFT is unique.
Per the FASB's foundational criteria, fungibility ensures consistency in measurement and comparability in reporting standards.
It Can't Be Created by You or a Related Party - If your company minted or issued the token, it doesn't qualify. Why? Because it's too easy to manipulate value.
Imagine creating 1,000 tokens at zero cost, and then manipulating the price to reach $5 through trading bots and selling the news. This would then lead to a valuation of $5,000 in assets on your books, with no cost and only artificial demand to back the price increase. This way, the standard prevents a window for fraudulent reporting by excluding self-issued tokens.

Every digital asset in your company's portfolio needs to be assessed individually if they qualify under ASC 350-60. Even if they look similar, only assets that meet all six criteria can be measured at fair value under ASC 350-60. And because crypto prices differ across platforms, professional judgment is crucial in determining a reasonable fair value for reporting. Employ Unified Global's expertise to ensure utmost compliance in this matter.

It should also be noted that ASC 350-60 does not apply to broker-dealers and investment companies as these are governed by separate standards.

All in all, fair value reporting sounds appealing, but it's not automatic. ASC 350-60 rewards precision, not assumptions. If your assets qualify, great! You're set for more accurate reporting. If not, then you're still bound by cost-based accounting under the old framework, ASC 350. Either way, knowing which rules apply spells the difference between getting fit for audit or getting flagged.

As the crypto landscape evolves, so do the standards for reporting it. If you're unsure which of your digital assets meet ASC 350-60's strict criteria, Unified Global's technical accounting team can help you assess, classify, and report your holdings with audit-ready confidence.

Crypto moves fast and acts fickle, but good thing we move smarter. Unified Crypto brings meaning to the mess by offering expert help in digital asset classification, cost-basis tracking, fair value measurement, and crypto tax compliance. From startups to exchanges, we help you decode the rules and build accounting systems that are audit-ready, regulator-proof, and growth-focused.

Bryan boasts a decade of experience as a CPA and TAAG manager at Unified Global. He specializes in applying IFRS and US GAAP to elevate financial reporting across industries like crypto, real estate, mining, SaaS, manufacturing, and NPOs.

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