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A proposed US accounting change could let companies count certain stablecoins as cash equivalents, removing a hurdle to corporate treasury adoption, according to a new report from Stripe-backed blockchain Tempo. Cointelegraph reported that the report examines an Accounting Standards Update the Financial Accounting Standards Board proposed in August.
Today, stablecoin holdings may not count toward a company’s reported cash reserves even when the tokens are fully backed by dollars, a gap that can affect liquidity ratios and loan covenants. Tempo’s argument is that the FASB proposal would let firms use stablecoins for payments and settlements without those complications.
Also read: FASB proposes new guidance on when stablecoins can be treated as cash equivalents
Key facts
- The FASB proposed the Accounting Standards Update in August 2026, and the proposal remains open for public comment until Nov. 19.
- Tempo says qualifying tokens require direct redemption rights with the stablecoin issuer, meaning exchange purchases of USDC would not automatically qualify.
- 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.
- The GENIUS Act, passed in July 2025, set the first comprehensive federal framework for payment stablecoins and takes effect in January 2027, or 120 days after regulators finalize implementing rules, whichever comes first.
- US dollar-backed stablecoins have surpassed $300 billion in market value, according to DefiLlama data.
Redemption rights decide who qualifies
The distinction Tempo draws is contractual rather than technical. A company’s agreement with the issuer is the qualifying element, so simply holding a token bought on a venue does not get a treasury to cash-equivalent treatment. Coinbase’s disclosure offers a working example: its redemption arrangement with Circle underpinned the classification of USDC and other payment stablecoins as cash equivalents in its 2025 annual report.
That framing matters for finance teams weighing stablecoins against bank deposits. Under the current treatment, a fully backed token may sit outside reported cash figures, which can ripple into covenant compliance and the ratios lenders and rating agencies track. The proposed update would narrow that mismatch for tokens tied to an issuer with redemption terms.
Also read: Visa survey: US stablecoin use could rise to 56% with bank-like cover
Regulation and the size of the market
The accounting question runs alongside a US regulatory build-out. The GENIUS Act established requirements for stablecoin issuers covering reserve backing and redemption obligations, while the FASB proposal addresses how companies account for the tokens they hold. The two tracks are separate: one governs issuers, the other the balance sheets of holders.
Scale gives the issue weight. Dollar-backed stablecoins have moved past $300 billion in market value per DefiLlama. Separately, the Trump administration is reportedly exploring ways to promote dollar-backed stablecoins overseas, with Bloomberg reporting the administration is weighing partnerships with private companies and possible involvement by the Treasury Department, State Department and US International Development Finance Corporation.
Why it matters
For corporate treasurers, the practical effect is whether a stablecoin balance can be reported next to bank cash rather than treated as a separate asset. That difference shapes liquidity ratios, covenant headroom and the internal approvals needed before a company holds tokens at scale. The FASB’s framework would apply broadly to US reporting entities, while the GENIUS Act’s issuer rules take effect later, so accounting clarity could arrive ahead of the full regulatory regime.
What to watch
The comment window on the FASB proposal closes Nov. 19. After reviewing feedback, the board will decide whether to finalize the update and will set an effective date, the point at which corporate filings would reflect any new treatment.
Reported by cointelegraph.com.
Source: Cointelegraph