The proposed criteria
Under the proposal, a stablecoin would qualify as a cash equivalent only if the holder can redeem it directly with the issuer at face value. The issuer must also maintain reserves of liquid assets equal to the number of stablecoins in circulation. That means a stablecoin that trades actively on exchanges but lacks those redemption rights wouldn't make the cut.
The board's language is explicit: liquidity in secondary markets is not sufficient on its own. That distinction could matter for companies that hold stablecoins as part of their treasury operations or as customer funds.
The stablecoin context
Stablecoins are a type of digital asset designed to maintain a stable value, often pegged to a fiat currency like the U.S. dollar. They've become a common tool for moving money in crypto markets and for companies that want to hold digital assets without the price swings of bitcoin or ether. But their accounting treatment has been inconsistent, with some companies treating them as intangible assets and others as financial instruments.
The proposal would give companies a clear framework for when a stablecoin can be treated
