TLDR
- The Financial Accounting Standards Board has proposed treating stablecoins as “cash equivalents” under GAAP rules.
- The proposal is open for public comment until November 19 before FASB can finalize the guidance.
- Analysts say the change could accelerate stablecoin adoption among companies and corporations.
- Basel III banking rules still classify stablecoins as high risk, requiring full dollar backing for every asset held.
- U.S. Senators have called for a repeal of these capital rules, calling them a de facto ban on crypto assets.
The Financial Accounting Standards Board has released a proposed rule that would let companies treat stablecoins as cash equivalents. This is the accounting body that sets the rules companies follow when reporting their finances, known as GAAP.
The proposal is open for public comment until November 19. After that period ends, the board can move to finalize the new guidance.
FASB says the idea grew out of a 2025 consultation. During that process, members raised concerns about how companies should list stablecoins on their balance sheets.
Right now, there is no clear standard for this. The new rule aims to fix that by changing the definition of cash equivalents to include stablecoins and certain digital assets.
What the Rule Would Require
Under the proposal, companies would need to disclose what counts as their cash equivalents. These are investments that carry low risk and can be turned into cash quickly.
Adding stablecoins to this category would put them in the same accounting bucket as cash and short term government bonds. That is a change from how they are currently treated.
Crypto commentator David Hoffman, who writes for Bankless, called the move bullish for stablecoin companies. He said it points to a broader shift in how digital assets are viewed by regulators.
Austin Campbell, founder of the crypto consulting firm Zero Knowledge Group, shared a similar view. He said the rule would let corporations hold stablecoins the same way they hold cash, at least for coins that meet the GENIUS Act standard.
The GENIUS Act requires stablecoins issued in the United States to be backed one to one by dollars. That backing is part of why supporters argue these coins qualify as cash equivalents.
Banking Rules Still Treat Stablecoins as Risky
While FASB is moving toward easier treatment, global banking rules have not caught up. Basel III, the set of international banking regulations built after the 2007 financial crisis, still classifies stablecoins as high risk.
Coins like USDT and USDC sit on public blockchains. Under Basel III, they are grouped with Bitcoin and Ethereum and carry a 1250 percent risk weight.
That means banks must hold dollar for dollar backing for every one of these assets they hold. Traditional cash and government bonds carry zero risk weight under the same rules. Mortgages carry a risk weight of up to about 50 percent.
Senator Cynthia Lummis and other Republican lawmakers have pushed back on these capital rules. They argue the rules are punitive and act as a de facto ban on crypto assets.
Campbell pointed out that FASB’s move adds pressure on bank regulators to revisit the Basel III framework. He said the accounting change was a sensible step that should help stablecoin adoption grow.
The push to update these rules comes as stablecoin use keeps climbing. Annual stablecoin transfer volume hit $10.9 trillion last year, a record at the time.
With four months left in 2026, volume has already reached $10.59 trillion this year. That pace suggests another record could be set before the year ends.
It is not yet clear whether FASB’s proposal will lead Basel III regulators to change their stance on stablecoins. The public comment period will help shape what the final rule looks like.
