What the Board did
At its October 29, 2025 meeting, the FASB added a project to its technical agenda addressing whether certain digital assets — principally fiat-backed stablecoins — may be classified as cash equivalents in the statement of cash flows. Rather than reaching conclusions, the Board discussed three possible approaches to the classification question and directed the staff to perform additional research and outreach before further deliberations. The project responds to the growth of corporate stablecoin holdings and to diversity in views about whether such holdings can meet the existing cash-equivalent definition in ASC 230-10-20.
Codification references
- ASC 230-10-20
Sources
Project context
This action is part of the FASB project Classification of Certain Digital Assets as Cash Equivalents. Addresses whether and when stablecoins qualify as cash equivalents under the existing ASC 230 definition, through illustrative examples and enhanced cash-equivalent disclosures.
Next expected milestone: Proposed ASU with a 90-day public comment period expected; final ASU likely 2027.