The Financial Accounting Standards Board (FASB) has published a proposed Accounting Standards Update that could change how public companies in the US report stablecoins on their balance sheets. The update targets Topic 230, which governs cash flow statements, and aims to clarify when digital assets qualify as cash equivalents.
The proposal introduces illustrative examples to help apply the existing definition of cash equivalents to digital assets like stablecoins, and also mandates enhanced disclosures for companies that report cash equivalents. This means that companies would need to break out significant classes and amounts of cash equivalents in their financial statements, providing more visibility for analysts and investors.
Proposed Changes
FASB received feedback from stakeholders in 2025 highlighting inconsistencies in how companies were treating stablecoins on cash flow statements, and has since added the topic to its technical agenda. The proposal represents the second major FASB action on digital assets in recent years, following ASU 2023-08, which established fair value accounting for certain crypto assets.
The new proposal tackles the classification question of what kind of asset a stablecoin is, and avoids naming specific tokens or blockchain protocols. Instead, it provides general references to digital assets, keeping the guidance technology-neutral. The public comment window is open until November 19, allowing corporate treasurers, auditors, and others to provide input before the proposal becomes final.
