US accounting overhaul could make stablecoins more attractive to corporations: Tempo
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
A report from blockchain company Tempo, supported by Stripe, highlights that a proposed U.S. accounting change by the Financial Accounting Standards Board (FASB) could allow qualifying stablecoins to be classified as cash equivalents on corporate balance sheets. This change aims to remove existing barriers for corporations using stablecoins, as current accounting practices do not recognize stablecoin holdings as cash reserves. The FASB proposal requires companies to have direct redemption rights with stablecoin issuers to qualify for this classification.
Why it matters
The proposed accounting update could make stablecoins more practical for corporate treasury operations by simplifying liquidity reporting and removing complications around loan covenants. This would enable companies to use stablecoins for payments and settlements more effectively. The source does not explicitly comment on broader market or policy impacts beyond this operational facilitation.
Key context
Current accounting standards do not treat stablecoins as cash equivalents, even when fully backed by US dollars, affecting reported liquidity ratios for companies holding these tokens. The FASB proposal was introduced in August and remains open for public comment until November 19, 2025. This accounting proposal is distinct but complementary to the GENIUS Act passed in July 2025, which is the first federal regulatory framework for payment stablecoins in the U.S., scheduled to take effect in January 2027.
Key numbers and entities
Entities mentioned include Tempo (a Stripe-backed blockchain company), the Financial Accounting Standards Board (FASB), stablecoin issuers such as Circle (issuer of USDC), Coinbase, and regulators involved under the GENIUS Act. The U.S. stablecoin market is noted to have surpassed $300 billion according to DefiLlama. The U.S. administration and organizations like the Treasury Department, State Department, and US International Development Finance Corporation (DFC) are reportedly exploring stablecoin projects overseas.
What remains unclear
The final details of the FASB proposal and its effective date are pending public comments and board review. The criteria for stablecoin issuers beyond direct redemption rights, the extent of potential corporate adoption, and the impact of the GENIUS Act regulations on stablecoin users are not fully detailed. The source does not clarify how soon or widely corporations might change their accounting practices or stablecoin usage following these developments.