Foresight News reports that the U.S. Financial Accounting Standards Board (FASB) has proposed treating eligible stablecoins as "cash equivalents." The proposal states that stablecoins with liquid reserves, annual disclosure of reserve assets, and the ability to be redeemed for U.S. dollars at a 1:1 ratio can be classified as cash equivalents, in the same category as U.S. Treasury bills, commercial paper, and money market funds.

The FASB says the move is intended to clarify how the existing definition of cash equivalents applies to certain digital assets, in order to address differences in treatment caused by the lack of uniformity in accounting standards. The proposal has not been finalized yet, and the public comment period runs until November 19. Since 2023, the FASB has been developing specialized accounting rules for crypto assets.