US accounting rule change could boost corporate stablecoin use

A proposed change to US accounting standards could significantly boost the adoption of stablecoins by corporations, according to a report by Tempo. The Financial Accounting Standards Board (FASB) put forth a proposal in August that, if finalized, would allow qualifying stablecoins to be classified as cash equivalents on company balance sheets. This would simplify treasury operations by enabling these digital assets to count towards reported cash reserves, thereby avoiding negative impacts on liquidity ratios and loan covenants.

Under the proposed rules, companies would need direct redemption rights with stablecoin issuers to classify their holdings as cash equivalents. Simply purchasing a stablecoin through an exchange, like Coinbase does with USDC in partnership with Circle, would not automatically qualify. Tempo highlighted Coinbase's classification of USDC as a cash equivalent in its 2025 annual report, emphasizing that the contract with the issuer is key.

The FASB proposal is currently open for public comment until November 19, after which the board will review feedback before finalizing the changes. This development follows the passage of the GENIUS Act in July 2025, which establishes a federal regulatory framework for payment stablecoins and is set to take effect in January 2027. The US dollar-backed stablecoin market has grown to over $300 billion, and the Trump administration is reportedly exploring international partnerships to promote these assets.