FASB stablecoin accounting plan could boost corporate adoption, Tempo says
A Tempo report says proposed US accounting rules could let companies count qualifying stablecoins as cash equivalents, provided they hold direct redemption rights with the issuer.
Why it matters: The rules would decide whether corporates can treat stablecoins as cash, shaping treasury demand for tokens such as USDC.
Key points
- The FASB proposed the Accounting Standards Update in August and public comment runs until 19 Nov.
- Tempo says direct redemption rights with the issuer are required; buying USDC on an exchange may not qualify.
A proposed US accounting change could make stablecoins more attractive to corporations by letting qualifying tokens count as cash equivalents, according to a report from Stripe-backed blockchain Tempo. The FASB stablecoin accounting plan was proposed in August and is open for public comment until 19 Nov, Cointelegraph reports.
Tempo says the FASB proposal would require companies to hold direct redemption rights with the issuer, so buying USDC through an exchange would not necessarily qualify the tokens as cash equivalents.
The board will review feedback before finalising the changes and setting an effective date.
Dollar-backed stablecoins have surpassed $300bn in market value, according to DefiLlama, while Bloomberg reports the Trump administration is weighing overseas stablecoin partnerships involving private companies and US agencies.
What to watch: Public comment on the FASB proposal runs until 19 Nov, after which the board will review feedback before finalising the changes and setting an effective date.
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