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FASB Proposes Stablecoin Cash-Equivalent Guidance
FASB proposes adding stablecoin examples to GAAP cash-equivalent guidance, aiming to end inconsistent accounting treatment as the assets gain traction in payments and treasury management.
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The Financial Accounting Standards Board wants to settle a question companies have been answering differently: when does a stablecoin count as cash?
A proposed update released Wednesday would add illustrative examples to U.S. GAAP showing how entities should evaluate whether certain digital assets qualify as cash equivalents. FASB said the guidance does not change the existing definition of "cash equivalents." It aims, instead, to promote consistent application across companies that hold these assets.
The proposal follows feedback from FASB's 2025 agenda consultation and other stakeholder outreach. Companies have been applying the rules unevenly, the board said, because the current standards do not directly address stablecoins or similar instruments.
Under the plan, FASB would introduce examples that walk through how the existing definition applies to specific digital assets. The examples target entities that hold those assets and are meant to improve comparability among financial statements.
FASB is also proposing expanded disclosure requirements. All companies that present assets as cash equivalents would have to break out the significant components and their amounts. The rule would apply whether or not those components include stablecoins.