00:00 Speaker A
The US accounting standards group proposes way to see stable coins as cash equivalent.
00:06 Speaker A
The Financial Accounting Standards Board, FASB, F A S B, a non-profit that governs accounting practices proposed that certain stable coins should fit the bill as cash like.
00:15 Speaker A
This actually really matters for institutions. I mean, you take Coinbase for example. I think it was until 2024, they had $1.2 billion in USDC on their balance sheet and they had to basically count those cryptos at count those as crypto assets and not as cash equivalents.
00:32 Speaker A
They were later later ready to get an audit from Deloitte, able to get an audit from Deloitte and to classify those as cash equivalents, but it really depends on the accountant, and this is really going to give people a unified, consistent standard, which FASB would want liquid reserves, at least one-to-one backing, direct redemption rights,
00:49 Speaker A
and clear regulatory compliance. But this would let corporate treasurer use stable coins without making their reported cash position look smaller. So,
00:57 Speaker A
think about the fact you have a 100, you know, million dollars and 50 million’s in cash and 50 million is in stable coins. Right now, you only get to count 50 million cash on your balance sheet basically. Now you’d be able to count the whole 100 million, which means you could use it for cross-border redemption, payments, all of these things.
01:14 Speaker A
This will be one of those quiet things that’s happening behind the scenes that we’re not talking about. And then we look back at some point and go, wow, that was really, really big news. It’s funny, I mean, crypto adoption has finally reached the final boss, it’s the accounting department.
01:28 Speaker A
Right? But we’ve had a lot of these kind of broken rules that existed for years that are pain points for institutions that are trying to find ways to participate in crypto, and they’re getting eliminated one by one by one by one by one. That’s a lot of ones.