Bitcoin (BTC-USD) pared some recent losses in Wednesday mid-afternoon trading as the U.S. Financial Accounting Standards Board confirmed new crypto accounting rules for businesses.

The oldest and biggest token (BTC-USD) drove up 3.7% to $42.7K at 3:05 p.m. ET, reversing all of this week's losses. There's still some near-term resistance in the way, with BTC reaching as high as $44.6K in the previous week.

Earlier on Wednesday, the FASB published fresh accounting rules that will allow companies that hold bitcoin (BTC-USD) or ethereum (ETH-USD) to record gains and losses immediately and classify crypto assets as financial assets. That, in turn, dismisses uncertainty over how much their holdings are actually worth.

Michael Saylor, founder and former CEO of business software maker and bitcoin HODLer MicroStrategy (MSTR), said the FASB guidance will make it easier for companies to adopt bitcoin (BTC-USD) as a treasury asset.

FASB has officially adopted Fair Value Accounting for #Bitcoin for fiscal years beginning after Dec 15, 2024. This upgrade to accounting standards will facilitate the adoption of $BTC as a treasury reserve asset by corporations worldwide," he wrote on X.

Perhaps another driver of bitcoin's (BTC-USD) intraday upswing, the Federal Reserve left borrowing costs unchanged, as expected, for a third straight meeting, though additional firming is still on the table. At the same time, Fed members indicated they expect more rate cuts next year than they had foreseen in September, according to the so-called dot plots. That sent the stock market higher and Treasury yields lower.

Crypto-related stocks gapped up as well: MicroStrategy (MSTR) +4.5%, Coinbase Global (COIN) +5.9%, Riot Platforms (RIOT) +6.9%, Marathon Digital (MARA) +12% and CleanSpark (CLSK) +14.6%.