A report from Tempo, a blockchain backed by Stripe, argues that a proposed FASB accounting update released in August could let qualifying stablecoins be classified as cash equivalents, removing a barrier to corporate adoption. Under current practice, stablecoin holdings may not count toward reported cash, affecting liquidity ratios and loan covenants even when tokens are fully backed by dollars. The proposal would require companies to hold direct redemption rights with the issuer, so buying USDC through an exchange would not automatically qualify, while Coinbase already classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report. Public comments on the proposal are open until Nov. 19. It follows the GENIUS Act passed in July 2025, which sets the first comprehensive federal framework for US payment stablecoins and is scheduled to take effect in January 2027.
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