What the Board did
At its April 15, 2026 meeting, the FASB tentatively decided to move forward with a proposed ASU adding illustrative examples to Topic 230 (Statement of Cash Flows) that explain when a stablecoin meets the existing definition of a cash equivalent, by linking the analysis back to that definition rather than creating a new category. The tentative criteria highlighted in the examples: the issuer maintains reserves composed of high-quality assets that are readily convertible to cash, maintained on at least a one-to-one basis with tokens outstanding, and the holder has a direct on-demand redemption right with the issuer. The Board also recommended annual incremental disclosures for all cash equivalents — dollar amounts disclosed by significant class of cash equivalent for each annual period presented, in the style of IAS 7 — applying to all entities, not only stablecoin holders. These decisions are tentative and subject to change until a final ASU is issued.
Tentative board decisions are subject to change at future meetings and do not change current GAAP. Nothing is authoritative until a final Accounting Standards Update is issued.
Codification references
- ASC 230-10-20
- ASC 230-10-50
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.