Crypto12 October, 20262 min read
FASB Proposal Would Let Qualifying Stablecoins Count as Corporate Cash Equivalents
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
FASB proposal would classify qualifying stablecoins as corporate cash equivalents. Direct redemption rights against the issuer determine eligibility for cash-equivalent treatment.
7 outlets told this the same way.
FASB eyes cash-equivalent stablecoins
The Financial Accounting Standards Board proposed in August a change that would allow qualifying stablecoins to be treated as cash equivalents on corporate balance sheets.
Tempo, a blockchain project backed by payments giant Stripe, argued that the classification would remove a longstanding obstacle because current practice can prevent even fully dollar-backed stablecoins from counting toward a company’s reported cash reserves.
Tempo said the proposed standard hinges on contractual terms, and it warned that simply purchasing USDC through an exchange would not necessarily establish the contractual relationship required for cash-equivalent treatment.
Tempo said, "Your contract with the issuer is what qualifies, and the token alone doesn't get you there," as the FASB opened public comment until Nov. 19.
The FASB proposal also ties into liquidity and compliance, because the classification would feed into how companies report liquidity and whether they remain in compliance with loan covenants tied to cash-like assets.
Redemption rights become the gate
Tempo said companies would need direct redemption rights with stablecoin issuers to qualify for cash-equivalent treatment, and it said that exchange purchases of USDC would not necessarily satisfy that requirement.
Cointelegraph said Tempo cited Coinbase as an example, because Coinbase classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report.
Tempo linked Coinbase’s accounting to its redemption arrangement with Circle, and it framed the issue as a matter of documentation rather than the token’s stability mechanism.
Tempo said, "Your contract with the issuer is what qualifies, and the token alone doesn't get you there," while the FASB proposal remained open for public comment until Nov. 19.
TradingView added that the board would review the remarks before finalizing the accounting changes and setting an effective date.
GENIUS Act and corporate stakes
The FASB accounting push landed alongside the GENIUS Act, which Congress passed in July 2025 to establish the first comprehensive federal framework for payment stablecoins.
The GENIUS Act is scheduled to take effect in January 2027, or 120 days after federal regulators finalize implementing rules, whichever comes first, and it focuses on issuer requirements such as reserve backing and redemption obligations.
Tempo said the accounting proposal addresses a separate but complementary problem, how companies account for the stablecoins they hold, as the dollar-backed stablecoin market surpassed $300 billion.
BigGo Finance said the policy momentum also carries a geopolitical dimension, with the Trump administration weighing partnerships with private companies to promote dollar-backed stablecoins overseas.
BigGo Finance reported that the effort could involve the Treasury Department, the State Department and the U.S. International Development Finance Corporation, while it said the comment period closes Nov. 19 before the board reviews feedback and determines a final rule and effective date.