FASB Proposal Would Let Eligible Stablecoins Be Classified as Cash Equivalents

The U.S. Financial Accounting Standards Board has proposed new accounting guidance that would allow eligible stablecoins to be classified as cash equivalents on corporate balance sheets. According to ChainCatcher, the proposal does not change the existing definition of cash equivalents, but clarifies how it applies to stablecoins and other digital assets.Under the proposal, qualifying digital assets must be redeemable for cash on demand, allow holders to redeem a fixed amount of cash directly from the issuer, and be backed 1:1 by segregated reserve assets made up of short-term, highly liquid assets. Companies would also be required to disclose the major components of cash equivalents each year, including Treasury bills, money market funds, and stablecoins. The proposal is open for public comment until November 19, 2026.