A proposed change in U.S. accounting standards could make stablecoins more appealing to corporations by allowing them to be classified as cash equivalents on balance sheets. A report from Tempo, backed by Stripe, highlights how the Financial Accounting Standards Board’s (FASB) August proposal aims to remove a key obstacle to corporate stablecoin adoption. Currently, stablecoin holdings may not count toward a company’s reported cash reserves, affecting liquidity ratios and loan agreements even when the tokens are fully backed by dollars.
The proposed update would enable companies to use stablecoins for payments and settlements without facing accounting complications. However, the FASB proposal requires companies to have direct redemption rights with stablecoin issuers. For instance, purchasing USDC through an exchange would not necessarily qualify those tokens as cash equivalents. Tempo notes that Coinbase classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report, citing its redemption arrangement with Circle.
The FASB proposal is open for public comment until November 19, with the board reviewing feedback before finalizing the changes. This development follows the passage of the GENIUS Act in July 2025, which established a federal regulatory framework for payment stablecoins in the U.S., set to take effect in January 2027. The act mandates reserve backing and redemption obligations for stablecoin issuers.
The market for U.S. dollar-backed stablecoins has surpassed $300 billion, according to DefiLlama data. Additionally, the Trump administration is reportedly exploring ways to promote these stablecoins overseas, potentially strengthening the U.S. dollar’s role as the dominant reserve currency.