US GAAP ASC 350-60: What Is In Scope for Crypto Fair Value

FASB ASU 2023-08 is widely summarised as "crypto is now fair value." The precise truth is narrower: it created ASC 350-60, which applies only to assets meeting specific scope criteria. Get the scope wrong and the whole accounting outcome is wrong. This guide is what is in and out, hedged, because scope is the deciding auditor judgement — and this article will not restate the criteria as a fixed checklist.

TL;DR

• ASC 350-60 = the US GAAP sub-topic from FASB ASU 2023-08: in-scope crypto at fair value through net income (vs the prior cost-less-impairment model).
• It does not cover every digital asset — it has specific scope criteria.
• Generally out: NFTs, tokens giving enforceable rights/claims to underlying goods/services, an entity's self-issued tokens, and (facts-dependent) certain wrapped tokens.
• Broadly in: a fungible digital asset meeting the intangible-asset definition, on a blockchain, cryptographically secured, no enforceable rights to underlying goods/services, not self-issued — a high-level shape, not the operative text.
• Scope decides the whole outcome (FV-through-NI + separate line vs other guidance) — settled first, before the chart of accounts.
• Not 1:1 with IFRS; scope is a fact-specific auditor judgement. Not accounting advice; criteria read from the standard.

What ASC 350-60 is

ASC 350-60 is the US GAAP sub-topic created by FASB ASU 2023-08 that requires in-scope crypto to be measured at fair value with changes in net income, replacing the prior cost-less-impairment intangible model for those assets. It does not change everything labelled "crypto" — it applies only to assets meeting the sub-topic's scope criteria. The scope question is the threshold and an auditor judgement against the standard.

It does not cover every digital asset

These continue under other guidance. The precise criteria are in the standard and applied to the specific asset with the auditor — not restated here as a definitive checklist (anti-fabrication discipline).

Broadly, what is in scope

High-level shape (not the operative text): in-scope crypto is generally a fungible digital asset meeting the intangible-asset definition, residing on and cryptographically secured on a distributed ledger/blockchain, giving no enforceable rights to/claims on underlying goods/services, and not created/issued by the reporting entity or its related parties. This indicates the shape of the scope — the operative criteria are in ASC 350-60, and the determination is an auditor judgement.

Why scope is decisive

It decides the entire accounting outcome: in-scope crypto is fair value through net income with the 2026 FASB taxonomy separate balance-sheet line; out-of-scope digital assets remain under other guidance (e.g. cost-less-impairment intangible — see impairment vs fair value). The same balance sheet looks very different depending on the conclusion — so scope is settled first, before the chart of accounts, and auditor-confirmed. Assuming everything "crypto" is fair value is a frequent error.

Relation to IFRS

Not 1:1. ASC 350-60 is US GAAP-specific; IFRS has no identical sub-topic and typically accounts for crypto as an intangible (IAS 38 cost/revaluation**)** or inventory (IAS 2), with IFRS 13 governing any fair-value measurement (see crypto CoA GAAP/IFRS mapping). A dual-reporting entity applies ASC 350-60 for US GAAP and the relevant IFRS standards separately — both auditor-confirmed.

Practical guidance

1. Answer the scope question first — not everything "crypto" is ASC 350-60.
2. Screen out NFTs, rights-bearing tokens, self-issued, (facts) wrapped — generally out.
3. Read the operative criteria from ASC 350-60 with the auditor — no assumed checklist.
4. Recognise scope decides the outcome (FV-through-NI + separate line vs other guidance).
5. Apply ASC 350-60 and IFRS separately if dual-reporting — not 1:1.
6. Confirm the scope determination with your auditor — fact-specific; not accounting advice.

How vendor tools handle scope

Cryptio and Bitwave can apply fair-value (in-scope) or other treatment once an asset's scope is set. Confirm the tool lets you flag scope per asset and apply the correct treatment — the tool applies the treatment; whether an asset is within ASC 350-60 is an auditor judgement against the standard.

How Wag3s helps

Wag3s Ledger records per-asset attributes and lets the ASC 350-60-in-scope vs out-of-scope treatment be applied and evidenced with an audit trail and ERP export — while the scope determination against the standard stays an auditor judgement. See the Ledger product page.

Further reading

• FASB ASU 2023-08 Crypto Fair Value
• Crypto Impairment vs Fair Value Accounting
• Crypto Asset Account Classification
• Crypto CoA: GAAP and IFRS Mapping
• NFT Accounting (Corporate)
• Crypto Chart of Accounts Design

Sources

• ASC 350-60 = US GAAP sub-topic created by FASB ASU 2023-08; in-scope crypto measured at fair value through net income (replacing the prior cost-less-impairment model for those assets); applies only to assets meeting the sub-topic's scope criteria
• Generally outside scope: NFTs, tokens with enforceable rights/claims to underlying goods/services, the entity's self-issued tokens, and (facts-dependent) certain wrapped tokens — these continue under other guidance
• Broad in-scope shape (not operative text): fungible digital asset meeting the intangible-asset definition, on a blockchain, cryptographically secured, no enforceable rights to underlying goods/services, not self-issued — operative criteria are in ASC 350-60
• Scope decides the whole outcome (FV-through-NI + 2026 FASB separate line vs other guidance) and is settled before the CoA; not 1:1 with IFRS (IAS 38/IAS 2/IFRS 13) — fact-specific auditor judgement, criteria read from the standard, not accounting advice