📰 Coinbase may face regulatory issues due to new FASB accounting rules that require cryptocurrency to be accounted for at fair value instead of the cost less impairment model. These rules will take effect in 2025, but companies can adopt them early, as Coinbase has done.

While the new rule provides a more accurate valuation of digital assets, it introduces volatility into company earnings. Coinbase excluded fair value volatility from its adjusted EBITDA, which could be seen as improper financial reporting.

The SEC has previously challenged similar adjustments in other companies’ reports.

ℂ𝕣𝕪𝕡𝕥𝕠 𝕖𝕟𝕥𝕙𝕦𝕤𝕚𝕒𝕤𝕥, 𝕘𝕪𝕞-𝕘𝕠𝕖𝕣 🦾, 𝕡𝕙𝕠𝕥𝕠𝕘𝕣𝕒𝕡𝕙𝕖𝕣 📸, 𝕒𝕟𝕕 𝕓𝕠𝕠𝕜 𝕝𝕠𝕧𝕖𝕣 📚.…………..ℍ𝕆𝔻𝕃 🦾😎
