The Financial Accounting Standards Board (FASB) has issued a proposed rule aiming to classify certain stablecoins as “cash equivalents.” The public comment period for the proposal remains open until November 19th before the accounting rulemaker finalizes the guidelines.
According to the FASB, the initiative follows a 2025 consultation during which members highlighted uncertainties regarding how stablecoins are treated on balance sheets. The proposed changes would alter the current definition of cash equivalents to encompass stablecoins and specific digital assets, requiring companies to disclose what constitutes their cash equivalents or low-risk, highly liquid investments.
Industry analysts suggest the accounting shift could signal a broader change and drive stablecoin adoption. David Hoffman of Bankless characterized the development as significant for stablecoin entities, while Austin Campbell, founder of consulting firm Zero Knowledge Group, noted that the decision codifies the ability of corporations to hold qualified stablecoins similarly to cash.
Campbell also suggested the decision creates pressure on bank regulators regarding Basel III regulations. Designed to promote financial stability following the 2007-2008 financial crisis, current Basel III guidelines treat stablecoins on public blockchains as high-risk assets—grouping them with Bitcoin and Ethereum—and assign them a 1250% risk weight. Conversely, traditional cash and government bonds carry a zero risk weight.
The push to modify digital asset rules coincides with rising transaction volumes. According to Visa data, annual stablecoin transfer volume reached a record $10.9 trillion last year, while volume for the current year has already hit $10.59 trillion with four months remaining. It remains undetermined whether the FASB proposal will prompt banking regulators to re-evaluate their capital treatment of stablecoins.
