US Accounting Overhaul Could Make Stablecoins More Attractive to Corporations

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 letting qualifying tokens count as cash equivalents on company balance sheets.

The proposal from the Financial Accounting Standards Board, issued in August, could make stablecoins more practical for corporate treasury operations. Under current rules, stablecoin holdings may not count toward reported cash reserves, affecting liquidity ratios and loan covenants even when fully backed by dollars.

Direct Redemption Rights Decide Qualification

According to Tempo, companies would need direct redemption rights with stablecoin issuers to qualify. Buying USDC through an exchange would not guarantee cash equivalent status. Your contract with the issuer is what qualifies, and the token alone does not get you there, Tempo said.

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

The FASB proposal is open for public comment until November 19 before the board sets an effective date.

GENIUS Act Framework Takes Effect in 2027

The proposal follows the GENIUS Act passed in July 2025, the first federal framework for payment stablecoins, set to take effect in January 2027 or 120 days after regulators finalize rules. The market for dollar backed stablecoins has surpassed $300 billion, and the Trump administration is reportedly weighing partnerships with private firms to promote stablecoin projects overseas through the Treasury, State Department and the US International Development Finance Corporation.