FASB Moves to Require Disclosure of Stablecoin Holdings on Corporate Balance Sheets

The Financial Accounting Standards Board (FASB) is preparing to bring stablecoins further into the financial mainstream, voting to propose new disclosure rules that would require companies to break out significant stablecoin holdings within their cash equivalents.

The proposal, approved in April, would require all companies to annually disclose the dollar value of major components of their cash equivalents. That category includes traditional instruments such as Treasury bills, commercial paper, and money-market funds, and now, potentially, stablecoins.

Stablecoins Enter the Accounting Spotlight

At the center of the proposal is a requirement that, if a company holds a material amount of stablecoins, those holdings must be disclosed as a distinct line item within cash equivalents.

FASB has not defined a strict threshold for what qualifies as “material,” leaving that determination to company judgment. However, the implication is clear. Stablecoins are no longer being treated as fringe assets.erf

Board member Christine Botosan emphasized the need for transparency as adoption grows.

“We can’t turn a blind eye to the fact that stablecoins are a new asset class,” Botosan said. “It is perfectly reasonable for investors to understand whether stablecoins are included among a company’s cash equivalents.”

The proposal is part of a broader effort by FASB to clarify how highly liquid, short-term assets should be categorized, particularly as new digital instruments blur traditional definitions.

When Does a Stablecoin Qualify as Cash?

Alongside disclosure requirements, FASB is also working to define when a stablecoin can be classified as a cash equivalent rather than a financial instrument.

Under the board’s current thinking, a stablecoin could qualify if two conditions are met:

• It is backed by sufficient liquid reserves
• The holder has a contractual right to redeem it for a known amount of cash directly from the issuer

This framework would bring certain stablecoins closer to instruments like money-market funds in accounting treatment, while excluding others that lack clear redemption rights or transparency around reserves.

Coinbase Signals the Direction of Travel

Some companies have already begun moving in this direction.

Coinbase Global disclosed earlier this year that it reclassified certain “payment stablecoins” as cash equivalents rather than financial instruments. The change was applied retroactively, increasing its reported cash and cash equivalents for 2024 to $9.3 billion, up from $8.5 billion.

By 2025, Coinbase reported $11.3 billion in cash and cash equivalents, underscoring how classification decisions can materially impact financial reporting.

FASB’s proposal would standardize this approach across public companies, reducing discretion and improving comparability.

What Comes Next

FASB plans to release a formal proposal and open a 90-day public comment period before finalizing the rule.

The board is also exploring whether to expand existing accounting standards to include assets like wrapped tokens, which allow cryptocurrencies to move across blockchains.

While no vote has been taken on that front, it signals a broader effort to modernize accounting rules for digital assets.