US Accounting Reforms Could Boost Corporate Adoption of Stablecoins, Says Tempo
A recent report by Stripe-backed blockchain firm Tempo highlights that proposed accounting revisions from the US Financial Accounting Standards Board (FASB) could remove key barriers for corporate stablecoin adoption. The suggested changes would allow qualifying tokens to be recognized as cash equivalents on corporate balance sheets, enabling smoother use in treasury operations and settlements within businesses.
FASB Proposal and Its Impact on Corporate Stablecoin Accounting
In August 2025, the Financial Accounting Standards Board (FASB) put forward an Accounting Standards Update proposal which could allow companies to classify stablecoins as cash equivalents in financial statements. Under current accounting rules, stablecoin holdings often do not count as part of a company's reported cash, adversely affecting liquidity ratios and loan covenants, even when these tokens are fully dollar-backed.
The proposed update requires companies to hold direct redemption rights with stablecoin issuers to qualify. For instance, purchasing USDC through an exchange does not automatically enable firms to categorize those tokens as cash equivalents.
According to Tempo, Coinbase classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report, supported by a specific redemption agreement with Circle, the issuer of USDC.
Regulatory Context and Next Steps
The FASB proposal is open for public comment until November 19, 2025. Following this period, the board will review feedback before finalizing the accounting changes and determining an effective date.
This initiative follows the enactment of the GENIUS Act in July 2025, which established the first comprehensive federal regulatory framework for payment stablecoins in the United States. The law will take effect in January 2027 or 120 days after federal regulators finalize implementing rules, whichever comes first.
While the GENIUS Act sets requirements for stablecoin issuers—including reserve backing and redemption mandates—the FASB proposal addresses how firms account for stablecoins they hold.
Market and Geopolitical Implications
The market for US dollar-backed stablecoins has surpassed $300 billion, as reported by DefiLlama, highlighting the growing importance of these digital assets.
The US administration is exploring avenues to promote dollar-backed stablecoins internationally, potentially reinforcing the US dollar’s position as the dominant reserve currency.
According to Bloomberg, the government is considering partnerships with private firms on overseas stablecoin projects, potentially involving the Treasury Department, State Department, and the US International Development Finance Corporation (DFC).
Why it matters
The US Financial Accounting Standards Board’s proposal marks a significant step toward integrating stablecoins into corporate financial frameworks. Allowing stablecoins to be classified as cash equivalents will create more favorable conditions for companies to use them in everyday transactions and liquidity management. Alongside the recently enacted GENIUS Act—which establishes federal regulations for stablecoin issuers—the FASB initiative helps standardize and simplify the legal and accounting landscape for digital currencies. This could accelerate large-scale adoption of stablecoins by corporations, broaden their role in traditional financial markets, and bolster the US dollar’s influence on the global stage.
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