The US Financial Accounting Standards Board (FASB) has released a draft Accounting Standards Update aimed at clarifying how existing cash equivalent definitions apply to certain digital assets including stablecoins.
The initiative is part of a wider effort to improve transparency around the key components that make up cash equivalents.
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Stakeholders have been invited to review and comment on the proposal by 19 November 2026.
The push for reform stems from input gathered during the FASB Board’s 2025 agenda consultation process.
Contributors flagged persistent confusion over whether specific digital assets – stablecoins among them – satisfy the criteria for cash equivalents under existing US generally accepted accounting principles.
This ambiguity, according to the feedback received, has resulted in inconsistent treatment across different organisations.
In response, the proposed update introduces illustrative examples aimed at fostering a more uniform interpretation of the cash equivalents definition.
The goal is to enhance comparability between entities among stakeholders that elect to present qualifying digital assets as cash equivalents.
Notably, the draft does not alter the underlying definition of “cash equivalents” itself.
Beyond the digital asset guidance, the proposal calls for all reporting entities – not just those holding digital assets – to disclose more detailed information about the key components and corresponding amounts that make up their cash equivalents.
This expanded disclosure requirement is intended to give investors and other users of financial statements clearer insight into what actually constitutes a company’s reported cash equivalents.
The illustrative examples within the draft would apply specifically to organisations holding qualifying digital assets. The broader disclosure obligations, however, would extend to any entity that reports assets under the cash equivalents category.
