FASB: Stablecoins may be reported as cash equivalents, proposed update to U.S. accounting guidelines

Bitcoin News posted on the X platform stating that the Financial Accounting Standards Board (FASB) has proposed new U.S. accounting guidelines, allowing eligible stablecoins to be classified as cash equivalents in corporate financial statements.

According to the proposal, eligible digital assets must possess the following key characteristics: redeemable for cash on demand; holders can directly redeem a specified amount of cash from the issuer; reserve assets must be managed separately and fully backed by short-term, highly liquid assets on a 1:1 basis (DART).

FASB has not modified the existing definition of cash equivalents but clarified how this definition applies to digital assets such as stablecoins. Companies are also required to disclose the significant components of cash equivalents annually, including categories such as Treasury bills, money market funds, and stablecoins. The proposal is open for public comment until November 19, 2026.