FASB Proposal Treats Stablecoins as Cash, Draws Industry Praise

The comment refers to the GENIUS Act, which mandates that U.S.-issued stablecoins maintain a 1:1 backing with liquid reserves. Such coins would qualify as cash equivalents under the proposed rule.

Campbell’s mention of B3 – Basel III, the global banking standards – points to a tension. Basel III currently treats stablecoins on public blockchains, including USDT and USDC, alongside Bitcoin and Ethereum. Those assets carry a 1,250% risk weight, meaning banks must hold $1 of capital for every $1 of exposure. By contrast, cash and government bonds carry a zero risk weight, and mortgages draw roughly 50%.

U.S. senators led by Cynthia Lummis have called for a repeal of those capital rules, labeling them punitive and a de facto ban on crypto assets. The FASB proposal could add pressure on regulators to revisit the Basel treatment.

Stablecoin adoption has grown sharply. Annual transfer volume hit $10.9 trillion last year, and with four months left in 2026, the running total stands at $10.59 trillion, per on-chain data.

FASB will accept public comments until Nov. 19 before finalizing the rule.