A report by the blockchain firm Tempo suggests that new accounting standards proposed by the Financial Accounting Standards Board (FASB) could facilitate corporate stablecoin adoption. The rules would allow companies to classify specific stablecoins as cash equivalents on their balance sheets, provided they hold direct redemption rights with the issuer.
Current accounting practices often prevent companies from counting stablecoin holdings toward cash reserves, which impacts liquidity ratios and loan covenants. The FASB proposal, introduced in August, aims to simplify this by allowing qualifying tokens to be used for payments and settlements without existing complications. Tempo notes that simply holding a token is insufficient; a direct contract with the issuer is required.
Coinbase serves as an example, having classified USDC as a cash equivalent in its 2025 annual report due to its redemption arrangement with Circle. The FASB is accepting public comments on the proposal until November 19, after which it will finalize the rules and determine an effective date.
These accounting changes follow the passage of the GENIUS Act in July 2025, which created a federal regulatory framework for payment stablecoins. The law is set to take effect in January 2027 or 120 days after regulators finalize implementation rules. While the Act governs issuer requirements, the FASB proposal focuses on corporate accounting treatment.
The market for US dollar-backed stablecoins has exceeded $300 billion, according to DefiLlama. Additionally, the current administration is reportedly exploring international partnerships involving the Treasury and State Departments to promote dollar-backed stablecoins abroad, aiming to strengthen the role of the US dollar as a global reserve currency.
