Overview
- FASB published the proposal on Aug. 18, 2026 to add illustrative examples to ASC 230 so certain fiat-backed stablecoins may be presented as cash equivalents under existing US GAAP.
- A token would qualify only if the holder has a contractual on-demand right to redeem with the issuer for a known cash amount, the issuer keeps at least one-to-one reserves in segregated accounts, and those reserves are held in short-term, highly liquid assets.
- The board made clear that secondary-market liquidity does not substitute for direct issuer redemption rights and that algorithmic or volatile-reserve tokens would be excluded from cash-equivalent treatment.
- If finalized, companies would be required to disclose each major class of cash equivalents and the dollar amounts annually, enabling investors to see how much reported liquidity rests on stablecoins.
- The proposal is open for public comment through Nov. 19, 2026 and is not final, so adoption will depend on FASB’s review of responses and separate federal rulemaking on stablecoin issuance and reserve rules.