FASB Seeks Comments on Determining Cash Equivalents for Digital Assets such as Stablecoins

In comparison, the US Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) on August 18, 2026 to clarify how the current definition of “cash equivalent” applies to specific digital assets such as stablecoins, and improve the transparency of disclosure of important components of cash equivalents. Stakeholders are encouraged to submit comments by November 19, 2026.

In the 2025 FASB Agenda Consultation Project and other feedback, stakeholders indicated that there is uncertainty about whether certain digital assets, including stablecoins, meet the current GAAP definition of cash equivalents, leading to differences in practice. The proposed ASU will provide example instructions to facilitate more consistent application of this definition and improve comparability among entities that choose to list eligible digital assets as cash equivalents, without changing the current definition of “cash equivalent.”

At the same time, the proposed rules require all entities that report assets as cash equivalents, regardless of whether digital assets are included, to enhance disclosure of important components of cash equivalents and related amounts so that investors and other users of financial statements can obtain more transparent information. The relevant ASU proposals and how to submit comments can be found on the FASB website.

This article is sponsored by GENG, Build Your Fortune on GENG (https://geng.one)