A new report from Stripe-backed blockchain Tempo argues that a proposed US accounting change could remove a major barrier to corporate stablecoin adoption by allowing qualifying tokens to be classified as cash equivalents on company balance sheets.

The report examines an Accounting Standards Update proposed in August by the Financial Accounting Standards Board (FASB) — the private-sector body that sets US GAAP — that could make stablecoins more practical for corporate treasury operations. Under current accounting practices, stablecoin holdings may not count toward a company's reported cash reserves, affecting liquidity ratios and loan covenants even when the tokens are fully backed by dollars. The proposed change could let companies use stablecoins for payments and settlements without those accounting complications. Under US GAAP, cash equivalents are generally short-term, highly liquid holdings that are readily convertible to known amounts of cash and carry an insignificant risk of changes in value.

Direct redemption rights are the deciding factor

According to Tempo, the FASB proposal would require companies to have direct redemption rights with stablecoin issuers. For example, buying USDC through an exchange would not necessarily let a company classify those tokens as cash equivalents.

Tempo cites Coinbase, which classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report, supported by its redemption arrangement with Circle.

"Your contract with the issuer is what qualifies, and the token alone doesn't get you there," Tempo said in the report.

The FASB proposal remains open for public comment until Nov. 19. The board will review the feedback before finalizing the accounting changes and setting an effective date, meaning companies weighing stablecoin treasury use will have both the standard-setting timeline and the GENIUS Act's implementing rules to follow.

Stablecoin regulation takes shape in the US

The FASB proposal follows the passage of the GENIUS Act in July 2025, which established the first comprehensive federal regulatory framework for payment stablecoins in the United States. The law is scheduled to take effect in January 2027, or 120 days after federal regulators finalize implementing rules, whichever comes first.

While the GENIUS Act establishes requirements for stablecoin issuers, including reserve backing and redemption obligations, the FASB proposal addresses how companies account for stablecoins they hold.

The developments come as the market for US dollar-backed stablecoins has surpassed $300 billion, according to DefiLlama data. The Trump administration is also reportedly exploring ways to promote dollar-backed stablecoins overseas, potentially reinforcing the US dollar's role as the dominant reserve currency.

According to Bloomberg, the administration is weighing partnerships with private companies to develop stablecoin projects overseas, potentially involving the Treasury Department, the State Department and the US International Development Finance Corporation (DFC).

Source: Cointelegraph