Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Thursday, September 7th, and today we are asking how big a deal

our new crypto accounting rules. Before we get into that, however, if you are enjoying the breakdown,

please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into

the conversation, come join us on the breakers discord. You can find a link of the show notes or go to bit.ly slash breakdown pod.

Now, reiterating that point, I said this on my AI show as well, but today you are listening to

a birthday episode.

Yes, 39 years ago today, I was born.

And if you would like to give me a beautiful gift, leaving a rating or a review for this show wherever you happen

to listen to it would be an awesome, awesome thing to do. I appreciate all of you listeners and

participants. And so let's talk new crypto accounting rules. The Financial Accounting Standards

Board or FASB have changed their recommendations for how crypto holdings should be recorded

in corporate financial statements.

The FASB oversees reporting and accounting standards for companies that follow generally accepted accounting principles or gap guidelines.

On Wednesday, the FASB unanimously passed a vote to recommend fair value accounting for crypto assets held on corporate balance sheets.

This means crypto will be marked

at the prevailing market price in financial reporting. Previously, corporations were recommended

to record impairment losses on their balance sheet when the price of crypto fell. This impairment

was not removed if crypto prices recovered, making it difficult to quickly determine the value

of corporate crypto holdings using this method.

Michael Saylor, the chairman of Micro Strategy, has been railing against this recommended accounting for years, claiming that it made little sense it was misleading to investors.

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