US Accounting Rule Change Could Let Corporations Count Stablecoins as Cash

Proposed accounting change could let companies treat stablecoins as cash

A new report from Tempo, a Stripe-backed blockchain company, argues that a proposed US accounting rule change could remove a major barrier to corporate stablecoin adoption. The Financial Accounting Standards Board (FASB), which sets accounting standards in the US, proposed an Accounting Standards Update in August that would allow qualifying stablecoins to be classified as cash equivalents on company balance sheets.

Stablecoins are digital tokens designed to hold a fixed value, typically pegged to a fiat currency such as the US dollar. Under current accounting practices, a company holding stablecoins may not count those tokens toward its reported cash reserves. This can affect liquidity ratios and loan covenants, even when the tokens are fully backed by dollars.

Key requirements in the FASB proposal

• Companies would need direct redemption rights with stablecoin issuers to classify stablecoins as cash equivalents.
• Buying stablecoins through an exchange would not necessarily meet the requirement.
• Coinbase has already classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report, supported by its redemption arrangement with Circle, the issuer.
• Tempo stated: "Your contract with the issuer is what qualifies, and the token alone doesn't get you there."
• The proposal is open for public comment until November 19, 2026.

Regulatory backdrop

The FASB proposal follows the passage of the GENIUS Act in July 2025, which established the first comprehensive federal regulatory framework for payment stablecoins in the United States. The law is scheduled to take effect in January 2027, or 120 days after federal regulators finalize implementing rules, whichever comes first.

The GENIUS Act sets requirements for stablecoin issuers, including reserve backing and redemption obligations. The FASB proposal addresses a separate question: how companies account for stablecoins they hold.

Why this matters for corporate treasurers

If finalized, the accounting change could let companies use stablecoins for payments and settlements without the current reporting complications. The market for US dollar-backed stablecoins has surpassed $300 billion, according to DefiLlama data. Separately, Bloomberg reported that the Trump administration is weighing partnerships with private companies to develop stablecoin projects overseas, potentially involving the Treasury Department, State Department, and the US International Development Finance Corporation.

What happens next

The FASB will review public feedback on the proposal before finalizing the accounting changes and setting an effective date. No final date has been announced.

Sources

• Cointelegraph