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A proposed change to U.S. accounting rules could allow companies to classify certain stablecoins as cash equivalents on their balance sheets, removing a key barrier to corporate adoption. Tempo, a Stripe-backed blockchain startup, argues the FASB draft guidance would require firms to hold direct redemption rights with stablecoin issuers, meaning tokens purchased through exchanges may not qualify. The proposal is open for public comment until Nov. 19. The accounting shift follows the July 2025 passage of the GENIUS Act, which created a federal framework for payment stablecoins. Dollar-backed stablecoin supply has surpassed $300 billion, and the Trump administration is reportedly exploring overseas promotion of the tokens.
Key Elements
A proposed change to U.S. accounting rules could clear a longstanding obstacle for companies weighing whether to hold dollar-backed stablecoins, potentially making the tokens far easier to integrate into corporate treasury operations.
Tempo, a blockchain project backed by payments giant Stripe, argues in a new report that draft guidance from the Financial Accounting Standards Board (FASB) would allow qualifying stablecoins to be treated as cash equivalents on corporate balance sheets. That classification carries real consequences: it feeds directly into how companies report liquidity and whether they remain in compliance with loan covenants tied to cash-like assets.
Under current practice, even stablecoins fully backed by U.S. dollars may not count toward a company’s reported cash reserves. The gap creates friction for treasury teams that might otherwise use the tokens for payments and settlements, since excluding them from cash equivalents can distort liquidity ratios and complicate financing agreements.
The FASB introduced the proposal in August. Public comment remains open until Nov. 19, after which the board will review feedback and determine a final rule and effective date.
Redemption rights are the linchpin
Not every stablecoin holding would qualify. Tempo’s analysis emphasizes that the proposed standard hinges on contractual terms rather than the token itself. To receive cash-equivalent treatment, a company would need direct redemption rights with the stablecoin issuer.
That distinction matters in practice. Simply purchasing a token such as USDC through an exchange would not necessarily establish the contractual relationship required for the new classification. The mechanism of acquisition, and the agreement governing a firm’s access to the issuer, could determine whether the accounting treatment changes.
“Your contract with the issuer is what qualifies, and the token alone doesn’t get you there,” Tempo said in the report.
The startup points to Coinbase (COIN) as a real-world example. In its 2025 annual report, the exchange classified USDC and other payment stablecoins as cash equivalents, a treatment Tempo attributes to Coinbase’s redemption arrangement with Circle, the issuer of USDC. The case reinforces the broader argument that documentation and direct contractual rights may be as important as the stability mechanism itself.
Regulatory and accounting tracks converge
The accounting push lands amid a broader U.S. regulatory shift for stablecoins. In July 2025, Congress passed the GENIUS Act, establishing the first comprehensive federal framework for payment stablecoins. 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 focuses on issuer requirements such as reserve backing and redemption obligations, the FASB proposal addresses a separate but complementary problem: how companies account for the stablecoins they hold. Together, the two tracks could reduce uncertainty for corporate treasurers evaluating whether to deploy stablecoin strategies.
Market growth adds urgency to the discussion. Dollar-backed stablecoins have surpassed $300 billion in total supply, according to data from DefiLlama, a scale that makes balance-sheet treatment more than an accounting technicality. Corporations, auditors, lenders and treasury teams increasingly need consistent rules to manage stablecoin assets within mainstream finance.
The policy momentum also carries a geopolitical dimension. The Trump administration is weighing partnerships with private companies to promote dollar-backed stablecoins overseas, an effort that could involve the Treasury Department, the State Department and the U.S. International Development Finance Corporation. The goal, as could include reinforcing the dollar’s position as the dominant reserve currency
For companies holding stablecoins through intermediaries, the proposal may prompt a review of custody arrangements and redemption contracts. Stablecoin programs built on issuer-level redemption access could become more straightforward for financial reporting, while token exposure obtained strictly through secondary-market purchases could remain harder to classify as cash equivalents.
The key variable in the coming months will be how the FASB interprets “direct redemption rights” in practice. Companies, auditors and industry groups are likely to weigh in during the comment period, and those submissions may determine whether corporate stablecoin adoption becomes materially easier once a final rule takes effect.
