Stablecoins could become cash equivalents: what the FASB proposal says

Stablecoins could become cash equivalents: what the FASB proposal says

On August 18, 2026, the US Financial Accounting Standards Board (FASB) published a draft standard that could officially include stablecoins in cash equivalents. The comment period is open until November 19, 2026, so the discussion is now in full swing.

What FASB is proposing

The document is a proposed ASU, that is, a draft update to accounting standards. It supplements Topic 230 on the statement of cash flows with examples that help a company assess when a digital asset, primarily a stablecoin, meets the definition of a cash equivalent.

The definition itself does not change. The board simply shows how to apply the existing rules to a new type of asset.

Three conditions for a stablecoin

To qualify as a cash equivalent, a coin must pass three tests at the same time.

• a contractual right to redeem on demand;
• a direct right to redeem with the issuer for a known amount of cash;
• segregated reserves of at least one to one in short-term, highly liquid assets.

Secondary market liquidity is not enough for this. If a coin is easy to sell on an exchange but cannot be redeemed with the issuer, it does not meet the definition.

There is also a general requirement: all companies will have to disclose the significant components of their cash equivalents annually.

Coinbase has already taken this step

Coinbase did not wait for the final text and already reclassified "payment stablecoins" as cash equivalents in its February annual report.

FASB added the project itself to its agenda in October 2025. From what we see, less than a year from agenda to draft is fairly fast for a body that writes accounting rules.

Why this opens the door for corporate treasuries

In our view, a clear accounting rule removes one of the main barriers for corporate treasuries. A stablecoin that meets the three conditions becomes a familiar line item in financial statements, understood by auditors, banks and investors.

From there the chain is simple. The clearer the accounting, the more willing companies are to hold part of their working capital in stablecoins, and the higher the demand for coins with transparent reserves and direct redemption, which the market primarily associates with USDC and similar regulated coins.

What this means for an arbitrage trader

If corporate demand grows, liquidity in stablecoin pairs will deepen and order books will fill up. We believe coins with direct redemption with the issuer will benefit first, so it is worth checking which stablecoins hold your working capital.

There is also an upside for settlements between exchanges. When the market treats different stablecoins almost as cash, the gap between their quotes can narrow, and a trade carries less conversion risk.

The draft may still change based on the comments. But the direction is already clear: accounting is recognizing stablecoins as almost cash.

Our tools

Stablecoins trade at slightly different prices in different pairs and on different exchanges, and that difference is only visible when you compare venues. Our arbitrage screener keeps dozens of venues in one window, refreshes quotes every second and shows each gap together with the volume actually behind it. The spread calculator helps you check what survives fees, network costs and slippage at your size. The bot is fully manual. It never connects to your exchange API keys.

To test the tools on a live market, ArbitrageScanner offers one day of free access to the whole ecosystem.

FAQ (Frequently Asked Questions)

1. Can stablecoins be treated as cash equivalents?

Under the FASB proposal they can, if they meet three conditions: redemption on demand, a direct right to redeem with the issuer, and reserves of at least one to one.

2. What is a FASB proposed ASU?

It is a draft update to US financial accounting standards. This one supplements Topic 230 on the statement of cash flows.

3. What is the deadline for comments on the FASB proposal?

November 19, 2026.

4. Why is exchange liquidity not enough?

The secondary market does not replace the right to redeem with the issuer. The coin must be directly redeemable for a known amount of cash.

Conclusion

FASB has proposed clear criteria under which stablecoins can qualify as cash equivalents. Comments are accepted until November 19, 2026.

For the market, this is a step toward corporate treasuries holding stablecoins as comfortably as deposits. Transparent coins with direct redemption will be the winners.

IMPORTANT! We are software developers. We do not give recommendations or promises of earnings and we do not advise you to invest your money anywhere. Our software is fully manual, all your money stays under your own control. We show examples of how our clients have earned on arbitrage in the past, but we do not advise repeating those actions one to one. Your earnings depend solely on your own actions and on market factors.