US accounting overhaul could make stablecoins more attractive to corporations: Tempo

A recent report from Tempo, backed by Stripe, suggests that a proposed US accounting change could facilitate the adoption of stablecoins by corporations. The Financial Accounting Standards Board (FASB) has proposed an Accounting Standards Update that could permit companies to classify certain stablecoin tokens as cash equivalents on their balance sheets.

This change would eliminate accounting complications, potentially making stablecoins more practical for corporate treasury operations. Currently, stablecoin holdings may not be counted toward a company's reported cash reserves, impacting liquidity ratios and loan covenants, even when the tokens are fully backed by dollars. To qualify for this classification, companies would need direct redemption rights with the stablecoin issuers.

For instance, purchasing USDC through an exchange might not automatically classify those tokens as cash equivalents. Coinbase, a major player in the stablecoin space, has already classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report, thanks to its redemption arrangement with Circle. The proposed FASB rule is still open for public comment until November 19, after which the board will review the feedback before finalizing the accounting changes and establishing an effective date.

This development is part of a broader trend in the cryptocurrency sector, with the market for US dollar-backed stablecoins surpassing $300 billion. The Trump administration is also reportedly considering ways to promote dollar-backed stablecoins overseas, potentially bolstering the US dollar's status as the dominant reserve currency.