FASB just dropped a proposal that could let certain stablecoins count as cash equivalents under US GAAP.
Requirements:
- Backed by liquid reserves equal to circulating supply
- Annual reserve disclosures
- Redeemable for USD on demand
This puts qualifying stablecoins in the same bucket as Treasuries, commercial paper, and money market funds for accounting purposes.
Why it matters: Removes accounting ambiguity. Companies have been treating stablecoins differently because there's no clear standard. This could accelerate corporate adoption if it passes.
Timeline: Public comment period open until Nov 19. Not finalized yet.
Bullish for $USDC $USDT and any stablecoin issuer that can meet the criteria. Corporate treasuries might finally start holding stablecoins on balance sheets without weird accounting gymnastics.
Requirements:
- Backed by liquid reserves equal to circulating supply
- Annual reserve disclosures
- Redeemable for USD on demand
This puts qualifying stablecoins in the same bucket as Treasuries, commercial paper, and money market funds for accounting purposes.
Why it matters: Removes accounting ambiguity. Companies have been treating stablecoins differently because there's no clear standard. This could accelerate corporate adoption if it passes.
Timeline: Public comment period open until Nov 19. Not finalized yet.
Bullish for $USDC $USDT and any stablecoin issuer that can meet the criteria. Corporate treasuries might finally start holding stablecoins on balance sheets without weird accounting gymnastics.