TheCorporateCounsel.net

I might as well continue on the themes of digital assets and accounting because – look! – there’s more! On Tuesday, the FASB announced that it published a proposed ASU (Accounting Standards Update) that would clarify how the definition of ‘cash equivalents’ applies to stablecoins and certain other digital assets.

During the 2025 FASB agenda consultation project and through other feedback, stakeholders noted uncertainty about whether certain digital assets, including stablecoins, meet the definition of cash equivalents under current generally accepted accounting principles (GAAP). That uncertainty has led to diversity in practice.

To address that stakeholder feedback, the proposed ASU would provide illustrative examples to promote more consistent application of that definition and improve comparability among entities that elect to present qualifying digital assets as cash equivalents.

This is just clarifying guidance for entities that hold these digital assets; the proposal does not change the definition of ‘cash equivalents.’

That said, the relevance of this proposed ASU isn’t limited to organizations that hold digital assets. It also proposes expanding the disclosure requirements for cash equivalents more generally. Those requirements are not limited to digital assets, and they apply to all entities that present assets as cash equivalents, regardless of whether they are digital assets.

FASB requests comments by November 19, 2026.

– Meredith Ervine