Eligible Stablecoins May Be Classified as Cash Equivalents, FASB Proposes Accounting Standard Update

Odaily News: The Financial Accounting Standards Board (FASB) has proposed that eligible stablecoins be treated as "cash equivalents." Under the proposal, stablecoins with liquid reserves, annual disclosure of reserve assets, and the ability to be redeemed 1:1 for U.S. dollars at any time could be grouped alongside Treasuries, commercial paper, and money market funds. FASB stated that the proposal aims to clarify how the existing definition of cash equivalents applies to specific digital assets. The proposal has not yet been finalized, with a public comment period open until November 19. FASB has been developing special accounting rules for crypto assets since 2023.