FASB seeks public input on proposed stablecoin accounting guidance

The Financial Accounting Standards Board (FASB) is seeking public input on proposed guidance that would provide greater clarity on whether certain digital assets, such as stablecoins, qualify as cash equivalents under existing US Generally Accepted Accounting Principles (GAAP), while expanding disclosures on cash-equivalent components.

Issued on August 18, the FASB proposal follows feedback that existing US GAAP does not provide enough clarity for companies in determining whether certain digital assets meet the cash-equivalent criteria, contributing to inconsistent treatment across organizations.

Under the proposal, FASB would provide illustrative examples for entities holding certain digital assets, helping them apply the existing cash-equivalent definition more uniformly. The board emphasized that the underlying definition itself would remain unchanged, meaning the proposal is focused on clarifying its application rather than expanding or narrowing the definition.

At the same time, FASB is proposing enhanced disclosures for all companies that report assets as cash equivalents. Those companies would have to disclose the significant components and related amounts within their cash equivalents, regardless of whether digital assets are included.

Stakeholders have until November 19, 2026 to comment.