FASB Wants Companies to Reveal Stablecoin Holdings

As The Wall Street Journal (WSJ) reported, the nonprofit standard-setter for accounting voted Wednesday (April 23) to propose that all companies each year reveal the dollar amounts of the significant components of their cash equivalents, which includes stablecoins as well as assets like money-market funds and Treasury bills.

“We can’t turn a blind eye to the fact that stablecoins are a new asset class,” said board member Christine Botosan, per the report.

“They exist in evolving regulatory environments. In light of that, it is perfectly reasonable for investors to say that they need to understand whether stablecoins are included among the companies’ cash equivalents.”

According to WSJ, the FASB has been studying whether some cryptocurrency assets qualify as cash equivalents, rather than financial instruments or other asset classifications. 

Companies in the industry, the report added, want to gain more clarity on booking stablecoins, a popular digital asset usually pegged to a fiat currency. The FASB decided to widen the scope to include any businesses with cash equivalents on their balance sheet.

Under the FASB proposals, companies that include a significant amount of stablecoins in their cash equivalents must disclose them as a specific class alongside traditional equivalents like commercial paper or money-market funds. It is up to the companies to decide what qualifies as a “material amount,” WSJ added.

The FASB vote comes as a growing number of chief financial officers are taking a closer look at stablecoins as a practical method for money movement.

The interest can be seen in “Stablecoins Gain Ground: Why CFOs See More Promise There Than in Crypto,” a March PYMNTS Intelligence data book that looks at how middle market finance leaders are viewing digital assets.

The research shows that while cryptocurrencies still garner attention, stablecoins are picking up traction as they are more in line with payment needs.

“CFOs are not rushing in, but they are signaling where digital asset adoption may go next,” PYMNTS wrote earlier this month.

“The findings show a clear gap between interest and execution. Stablecoins are being discussed, tested and explored at higher rates than cryptocurrencies, yet real-world use remains limited so far. Firms are still waiting for clearer regulatory frameworks, stronger bank connections and systems that fit into existing treasury workflows. In short, stablecoins are moving from concept to consideration, but not yet to standard practice.”