A proposed change to US accounting standards could remove a significant obstacle to corporate use of stablecoins by allowing some tokens to be reported as cash equivalents, according to a report from Stripe-backed blockchain company Tempo cited by Cointelegraph.
The proposal is being considered by the Financial Accounting Standards Board, or FASB. Its potential impact is important because companies can use stablecoins for payments and settlement, but their balance-sheet treatment under existing practices may not reflect the fact that some tokens are backed by dollars.
Why the accounting treatment matters
Under current accounting practices, stablecoin holdings may not be included in a company’s reported cash reserves. That can affect measures such as liquidity ratios and the terms of loan covenants, even when the digital tokens are fully backed by US dollars.
The FASB’s proposed Accounting Standards Update, released in August, could allow qualifying stablecoins to be classified as cash equivalents. Cash equivalents are highly liquid assets that companies generally treat as readily available for short-term financial needs. The change could therefore make stablecoins more practical for corporate treasury activities without creating the same accounting complications.
The proposal does not appear to qualify every token automatically. Tempo’s report says companies would need direct redemption rights with the stablecoin issuer. In other words, the contractual relationship between the company and the issuer would be central to the accounting treatment.
A company that purchased USDC through an exchange, for example, might not necessarily be able to classify its holdings as cash equivalents if it did not have a direct redemption arrangement with the issuer. Tempo summarized the point by saying that the issuer contract, rather than the token by itself, determines whether the holding qualifies.
Coinbase example and next steps
Tempo pointed to Coinbase’s 2025 annual report as an example of how direct redemption arrangements can support the classification. Coinbase reported USDC and other payment stablecoins as cash equivalents, with that treatment supported by its redemption arrangement with Circle.
The FASB proposal remains open for public comment until Nov. 19. After reviewing submissions, the board will decide whether to finalize the accounting changes and establish an effective date. Until those steps are completed, the proposal does not represent a final accounting rule.
Stablecoins and the wider US policy picture
The accounting initiative follows passage of the GENIUS Act in July 2025. The law created the first comprehensive federal framework in the United States for payment stablecoins, including requirements related to issuer reserves and redemption obligations. It is scheduled to take effect in January 2027, or 120 days after federal regulators complete implementing rules, whichever comes first.
The two developments address different issues: the GENIUS Act sets requirements for issuers, while the FASB proposal concerns how companies account for the stablecoins they hold. The market for US dollar-backed stablecoins has surpassed $300 billion, according to DefiLlama data. The Trump administration is also reportedly considering partnerships with private companies for stablecoin projects overseas, potentially involving the Treasury Department, State Department and US International Development Finance Corporation.
Current market picture
Moneyiar market data at 09:49 on Oct. 13, 2026, showed the Stable token at $0.0261961196, down 2.02% over 24 hours and 7.05% over seven days. Ethereum Name Service was $5.9799250718, down 4.65% in 24 hours and 12.89% over seven days. OriginTrail stood at $0.3969813252, down 0.55% over 24 hours and 4.83% over seven days. AKEDO was $0.0245274057, up 2.05% over 24 hours but down 19% over seven days.
