Browsing: Stablecoins

The crypto industry has long harbored a fantasy that stablecoins would bypass the traditional financial system entirely. It is a charming vision, but actually, the math suggests a more tedious reality: stablecoins are not replacing banks; they are becoming their most demanding clients.

Add to Google Preferred Sources The U.S. Financial Accounting Standards Board (FASB) on August 18 released a draft accounting standard update that would allow stablecoins meeting certain criteria to be classified as “cash equivalents.” Eligible stablecoins must hold liquid reserve assets at least equal to the circulating token supply, publicly disclose reserve composition annually, and…

  crypto.news  + 2 more21 m

Proposed rules drafted on Tuesday look to clarify how the current definition of cash equivalents applies to certain digital assets, such as stablecoins, and to increase transparency about the significant components of cash equivalents.