FASB Accounting Rules May Boost Corporate Stablecoins

A new report from Stripe-backed blockchain Tempo argues that a proposed US accounting change could remove a major barrier to corporate stablecoin adoption. According to Cointelegraph, the Financial Accounting Standards Board (FASB) proposed an Accounting Standards Update in August that could make stablecoins more practical for corporate treasury operations by allowing qualifying tokens to be classified as cash equivalents.

Direct Redemption Rights

Under current accounting practices, stablecoin holdings often do not count toward a company’s reported cash reserves, affecting liquidity ratios and loan covenants even when the tokens are fully backed by dollars. The proposed change could let companies use stablecoins for payments and settlements without those accounting complications.

According to Tempo, the FASB proposal would require companies to have direct redemption rights with stablecoin issuers. For example, buying USDC through an exchange would not necessarily let a company classify those tokens as cash equivalents. Tempo cites Coinbase, which classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report, supported by its redemption arrangement with Circle.

Regulatory Context

The FASB proposal remains open for public comment until Nov. 19. The board will review feedback before finalizing the changes and setting an effective date.

This development 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.

Key facts

• Tempo published a report examining a proposed FASB accounting change for corporate stablecoin holdings.
• The FASB Accounting Standards Update was proposed in August and remains open for public comment until Nov. 19.
• Qualifying for cash equivalent status requires direct redemption rights with stablecoin issuers, as demonstrated by Coinbase and Circle.
• The GENIUS Act established a federal regulatory framework for payment stablecoins, taking effect by January 2027.