FASB Proposal Could Let Some Stablecoins Count as Corporate Cash

A proposed accounting change could make stablecoins more practical for corporate treasury operations by allowing some holdings to qualify as cash equivalents on company balance sheets.

The Financial Accounting Standards Board issued the proposal in August. If adopted, the change would allow qualifying stablecoin holdings to be treated similarly to cash equivalents, potentially avoiding some accounting complications for companies using the tokens for payments and settlements.

Eligibility would depend on the holder’s contractual relationship with the issuer. Companies would need direct redemption rights, meaning they could redeem the tokens with the issuer under an established agreement. Buying USD Coin (USDC) or another stablecoin through an exchange would not automatically meet that requirement.

The proposal addresses how companies account for stablecoins they hold. It does not establish requirements for issuing the tokens or determine how stablecoin reserves must be managed.

The change comes as the market for U.S. dollar-backed stablecoins has surpassed $300 billion. It also follows the passage of the GENIUS Act in July 2025, which established a federal framework for payment stablecoins.

The law sets requirements for issuers, including reserve backing and redemption obligations. The FASB proposal addresses a separate issue: whether companies can classify qualifying stablecoin holdings as cash equivalents.

If adopted, the change would clarify how companies account for qualifying stablecoin holdings. The board will review public feedback before deciding whether to finalize the changes and when they would take effect.

The public-comment period remains open through Nov. 19.