FASB Proposes Accounting Guidance Allowing Eligible Stablecoins to Be Classified as Cash Equivalents

Bitcoin News said on X that the U.S. Financial Accounting Standards Board has proposed new U.S. accounting guidance that would allow eligible stablecoins to be classified as cash equivalents on corporate financial statements. According to Odaily, the proposal says 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.FASB did not change the existing definition of cash equivalents, but clarified how that definition applies to stablecoins and other digital assets. Companies would also need to disclose annually the major components of cash equivalents, including Treasury bills, money market funds and stablecoins. The proposal is open for public comment until November 19, 2026.