On Friday, Bitcoin experienced a minor rally, trading above the resistance level of US$26,000, after a week-long fluctuation between US$25,500 and US$26,000. This comes amid reports that JPMorgan Chase & Co. (NYSE:JPM), the largest bank in the U.S. by asset size, is exploring a blockchain-based payment and settlement system. The bank is reportedly developing a digital deposit token for cross-border payments and settlements, pending approval from U.S. regulators.
Meanwhile on Thursday, a new accounting rule was announced that could see tech giants such as Google (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) reporting on Bitcoin and other altcoins in their balance sheets. The rule mandates companies to declare their crypto holdings at fair value. This development is expected to attract more institutional investors to invest in Bitcoin. Companies can adopt this new standard as early as next year, although it will officially be effective after December 15, 2024.
Jeff Rundlet, head of accounting strategy at Cryptio, hailed this decision as a significant step towards mainstream adoption of cryptocurrencies. He further explained that this proposal could assist large corporations that have been hesitant to hold crypto on their balance sheet due to technical complexities.
The new requirement demands that companies make a distinct entry for crypto assets in their balance sheet and ensure annual disclosure of changes in their crypto assets opening and closing balances. However, there are some exemptions such as the immediate conversion of Bitcoin to cash.
Michael Saylor, MicroStrategy’s CEO, welcomed this change stating “Fair value accounting is coming to Bitcoin. This upgrade to FASB accounting rules eliminates a major impediment to corporate adoption of BTC as a treasury asset.
This move might also lead to heavyweight companies like Apple including crypto assets in their balance sheet. In 2021, Apple CEO Tim Cook confirmed owning Bitcoin or Ethereum when asked about it.
The market is also anticipating a decision from the U.S. Securities and Exchange Commission (SEC) regarding BlackRock (NYSE:BLK)’s application to create a spot Bitcoin exchange-traded fund (ETF), submitted on June 15.
