The Financial Accounting Standards Board (FASB) continues to refine U.S. GAAP for digital assets, and its latest tentative decisions on two key topics could have broad implications for issuers and holders of stablecoins, wrapped tokens, and other crypto assets.1
At its April 15, 2026 meeting, the Board unanimously agreed to expand the scope of Subtopic 350-60 Intangibles – Goodwill and Other – Crypto Assets to address crypto assets that provide holders with enforceable rights to receive another crypto asset within scope, such as wrapped tokens, which are economically similar to digital assets already within the scope of the Subtopic. The Board also indicated that these assets should be treated as separate crypto assets from other crypto asset holdings for disclosure purposes, and it recommended adding an illustrative tabular disclosure example to the proposed ASU.
The Board also approved moving forward with a proposed ASU on the classification of certain digital assets as cash equivalents. Rather than changing the definition of cash equivalents, FASB plans to provide illustrative examples in ASC 230, Statement of Cash Flows to help stakeholders assess what meets the existing definition. The Board emphasized that the threshold to qualify as a cash equivalent remains high.
The proposed examples would focus on the concepts that matter most in practice, including collateral and redemption rights. FASB agreed that the examples should explain why a stablecoin meets the definition of a cash equivalent by linking the analysis back to the existing definition. The examples would also highlight reserve support, specifically that holders should verify that the issuer has reserves composed of high-quality assets that are readily convertible to cash and maintained on at least a one-to-one basis. Importantly, the holder would need an on-demand redemption right directly with the stablecoin issuer.
The Board also clarified that holders should consider compliance with relevant laws and regulations when establishing a policy, recognizing that local legal frameworks may affect the policy election to classify an instrument as a cash equivalent. While the GENIUS Act was cited as part of the broader regulatory backdrop, the Board did not want to make the guidance overly prescriptive or imply that entities must obtain a legal opinion.
In a notable expansion beyond stablecoins, the Board also recommended annual incremental disclosures for all cash equivalents, similar to International Accounting Standard 7- Statement of Cash Flows. Under this approach, companies would disclose dollar amounts by significant classes of cash equivalents for each annual period presented, and the requirement would apply to all entities—not just those holding stablecoins.
Looking Ahead
FASB expects to issue a proposed ASU and open a 90-day public comment period, giving stakeholders a short but important window to weigh in on the guidance. The Board agreed on a modified prospective transition approach as of the beginning of the year of adoption. The new disclosures would also apply as of the date of the most recent statement of financial position presented in the period of adoption, and guidance on cash flow presentation will be provided. It also agreed that there would be no need for a preferability assessment. The Board decided for transition disclosures that an entity should disclose the nature of and reason for the change in the accounting principle, consistent with Topic 250.
Early adoption will be permitted.
Why This Matters
For issuers and holders of stablecoins, these developments matter in several ways. Stablecoin issuers may face increased pressure to demonstrate the quality and liquidity of reserve assets, while holders will have clear examples to assist them in assessing whether their stablecoin positions qualify as cash equivalents under the proposed examples. Financial statement preparers will also need to evaluate whether any cash equivalent balances require more granular disclosure, update internal controls, and revisit how stablecoin activity is presented in the statement of cash flows.
1 As noted on the FASB’s website, tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.
Frequently Asked Questions
FASB has decided to expand Subtopic 350-60 to cover crypto assets like wrapped tokens that grant enforceable rights to receive other qualifying crypto assets. The Board will also add new disclosure examples to improve comparability.
Instead of redefining cash equivalents, FASB plans to provide illustrative examples in ASC 230 to help determine if a stablecoin qualifies. These examples focus on reserve quality, redemption rights, and legal compliance, setting a high bar for classification.
Yes. FASB recommends annual incremental disclosures for all cash equivalents, not just stablecoins, requiring companies to break down balances by significant class for each year presented.
Issuers may need to demonstrate the liquidity and quality of their reserves, while holders will have clearer criteria for qualifying stablecoins as cash equivalents and may need to update their disclosures and cash flow reporting.
FASB will issue a proposed Accounting Standards Update (ASU) and open a 90-day public comment period. The Board supports a modified prospective transition, with early adoption permitted, and requires entities to disclose the nature and reasons for accounting changes during transition.
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