US Move to Treat Stablecoins as Cash Equivalents May Broaden Corporate Use

A proposed change to U.S. accounting standards that would recognize stablecoins as corporate cash equivalents could broaden how companies use the tokens.

Cointelegraph reported on Oct. 12 that Tempo, a Stripe-backed blockchain project, said in a recent report that a proposed revision by the Financial Accounting Standards Board could be a key turning point for corporate stablecoin adoption.

FASB in August proposed allowing stablecoins that meet certain conditions to be classified as cash equivalents on corporate financial statements. Under current accounting rules, even fully dollar-backed stablecoins may not be recognized as corporate cash holdings. That can affect liquidity metrics and compliance with loan covenants, limiting their use in actual payments.

Not all stablecoins would qualify as cash equivalents. According to Tempo, the proposal would require companies to have the right to seek redemption directly from the stablecoin issuer. That means simply buying USD Coin, or USDC, on an exchange may not satisfy the requirements for cash-equivalent treatment. Tempo cited Coinbase's 2025 annual report as an example, noting that the company classified USDC and other tokens as cash equivalents based on its redemption agreement with Circle.

The accounting-rule discussion is also tied to broader U.S. efforts to overhaul stablecoin regulation. The U.S. passed the GENIUS Act in July last year, establishing a federal regulatory framework for payment stablecoins. The law is scheduled to take effect on Jan. 1, 2027, or 120 days after federal regulators finalize implementing rules, whichever comes first. While the GENIUS Act sets standards for issuers' reserve assets and redemption obligations, the FASB proposal addresses how companies account for the stablecoins they hold.

As the dollar-based stablecoin market expands, related rulemaking is also picking up pace. DeFiLlama data shows the market for dollar-pegged stablecoins has surpassed $300 billion. The Donald Trump administration is also reviewing ways to support overseas stablecoin businesses in cooperation with private companies. FASB will accept comments on the proposal through Nov. 19, with the final accounting standard and its effective date to be decided afterward.