FASB Proposes Guidance That Would Let Companies Count Qualifying Stablecoins as Cash Equivalents
The proposal would let qualifying tokens with one-to-one reserves and on-demand redemption sit alongside Treasury bills on company balance sheets.
- On Tuesday, the Financial Accounting Standards Board proposed guidance allowing qualifying stablecoins to be considered "cash equivalents", aiming to resolve inconsistent accounting practices across industries.
- Current GAAP practices vary, causing firms to treat assets like USDC differently, which distorts working capital comparisons and complicates treasury decisions for corporate treasurers.
- To qualify, stablecoins must feature segregated reserves of at least one-to-one, on-demand redemption directly with issuers, and annual reserve disclosure, FASB said.
- This proposal removes significant obstacles for public companies holding tokenized dollars, with the board inviting public comment on the draft until November 19.
- Accounting updates align with the GENIUS Act, which became law in July 2025, and Treasury proposed rules on stablecoin issuers on Monday.
16 Articles
16 Articles
FASB Proposes Guidance That Would Let Companies Count Qualifying Stablecoins as Cash Equivalents
The Financial Accounting Standards Board issued a proposed accounting standards update on Tuesday that would clarify when digital assets qualify as cash equivalents under U.S. generally accepted accounting principles. The practical effect is that a qualifying stablecoin could sit in the same balance sheet line as Treasury bills, commercial paper and money market funds. The definition itself is not changing. FASB would add illustrative examples u…
A stablecoin promises in the name of what it has to prove in an emergency: a stable value, redeemable at all times. So far, there has been no sober standard to measure this promise. Since August 18, 2026, there has been one — and it comes from a corner where no one would have sought investor protection: from accounting. The US Accounting Council FASB has published a draft that specifies when a digital asset in a company's balance sheet may be he…
Why Regulators Should Not Decide Which Stablecoins Qualify as Real Cash Equivalents - The Cryptocurrency Post
The proposal to grant cash equivalent status to selected stablecoins fundamentally alters the nature of private money. Historically, markets define what is money through continuous adoption and real-time liquidity, not through accounting liquidity standards established by administrative standard-setting committees. This debate gains immediate relevance as corporate balance sheets integrate distributed ledger assets at scale. When accounting bodi…
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