FASB: Stablecoins May Be Classified as Cash Equivalents, Proposes Update to US Accounting Guidance

Bitcoin News stated on platform X that the US Financial Accounting Standards Board (FASB) has proposed new US accounting guidance, allowing qualifying stablecoins to be classified as cash equivalents in corporate financial statements. Under the proposal, qualifying digital assets must possess the following key characteristics: redeemable for cash on demand; holders can redeem a determinable amount of cash directly from the issuer; reserve assets must be segregated and managed, and fully backed at a 1:1 ratio by short-term, highly liquid assets (DART). FASB did not modify the existing definition of cash equivalents but clarified how this definition applies to digital assets such as stablecoins. Companies would also be required to annually disclose significant components of cash equivalents, including categories such as Treasury bills, money market funds, and stablecoins. The proposal is open for public comment until November 19, 2026.