Proposed US Accounting Rule Could Allow Companies to Count Stablecoins as Cash
The Financial Accounting Standards Board proposed an Accounting Standards Update that could change how American corporations report stablecoin holdings. Under the proposed rules, businesses holding direct redemption agreements with stablecoin issuers would be allowed to classify qualifying tokens as cash equivalents on balance sheets.
Current accounting practices prevent companies from counting stablecoin reserves toward reported cash totals. This can negatively impact corporate liquidity ratios and loan covenants even when tokens are fully backed by United States dollars. Counting stablecoins as cash equivalents would make digital tokens more practical for corporate treasury management, payments, and settlements.
Public comments on the proposal remain open until November 19, after which the board will evaluate feedback to finalize rules and determine an effective date. The proposed changes come as the US dollar-backed stablecoin market has expanded past $300 billion, following the passage of the GENIUS Act in July 2025.
Key points
- FASB proposed an accounting update to allow companies to record qualifying stablecoins as cash equivalents.
- Tokens qualify as cash equivalents only if a company holds a direct redemption agreement with the issuer.
- Current accounting rules omit stablecoin holdings from reported cash, impacting company liquidity metrics.
- Public comments on the FASB proposal are open until November 19 before final rules and effective dates are set.
- The US dollar-backed stablecoin market has grown beyond $300 billion under expanding federal regulatory frameworks.
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How we writeDisclaimerQuestions and answers
How could proposed FASB rules affect corporate stablecoin adoption?
The proposal allows companies holding qualifying stablecoins to classify them as cash equivalents on balance sheets, eliminating balance sheet complications that hinder corporate treasury adoption.
What is required for a stablecoin to count as a cash equivalent?
A company must maintain direct contractual redemption rights with the stablecoin issuer. Purchasing tokens on an exchange without an issuer arrangement does not qualify them as cash equivalents.
When will the FASB stablecoin accounting rules be finalized?
Public comments remain open until November 19. The board will review feedback before finalizing the accounting rule changes and announcing an official effective date.