Tempo: Proposed Accounting Rule Changes May Boost Corporate Appeal of Stablecoins in US
New analysis from Tempo explores potential impact of US accounting standards proposal on corporate use of stablecoins, where cash classification hinges on direct redemption arrangements with issuers.
According to a fresh analysis released by Tempo, the blockchain venture supported by Stripe, a forthcoming shift in US accounting standards has the potential to eliminate a significant obstacle preventing corporations from embracing stablecoins by permitting eligible digital tokens to be recorded as cash equivalents within corporate financial statements.
The analysis delves into an Accounting Standards Update that the Financial Accounting Standards Board (FASB) put forward in August, which has the potential to enhance the practicality of stablecoins for managing corporate treasury functions. Contemporary accounting methodologies prevent stablecoin assets from being included in a corporation's documented cash reserves, which creates complications for liquidity measurements and lending agreements despite these tokens maintaining complete dollar backing.
Should the proposed modification be implemented, corporations could utilize stablecoins for payment processing and transaction settlements while avoiding these accounting challenges.
Based on Tempo's findings, the FASB proposal stipulates that corporations must establish direct redemption rights directly with the entities that issue stablecoins. As an illustration, purchasing USDC through a cryptocurrency exchange would not automatically allow a corporation to categorize these tokens as cash equivalents.
Tempo references Coinbase, which recorded USDC along with additional payment stablecoins as cash equivalents within its 2025 annual report, made possible through its redemption agreement established with Circle.
Your contract with the issuer is what qualifies, and the token alone doesn't get you there
Tempo
The FASB proposal continues to accept public comment until Nov. 19. Following the comment period, the board will assess the feedback it receives before implementing the final accounting modifications and establishing when they will become effective.
Stablecoin regulation takes shape in the US
The accounting proposal from FASB arrives after the GENIUS Act became law in July 2025, marking the establishment of the nation's first expansive federal regulatory structure governing payment stablecoins throughout the United States. Implementation of the law is slated for January 2027, or 120 days following federal regulators' completion of implementing rules, depending on which date arrives earlier.
The GENIUS Act creates mandates for entities issuing stablecoins, encompassing reserve backing standards and redemption requirements, whereas the FASB proposal focuses on the accounting treatment for stablecoins that companies maintain in their holdings.
These regulatory developments are occurring while the marketplace for stablecoins pegged to the US dollar has grown beyond $300 billion, based on information from DefiLlama data. Additionally, the Trump administration is purportedly investigating strategies to encourage the adoption of dollar-backed stablecoins in international markets, which could potentially strengthen the US dollar's position as the primary reserve currency globally.
Reports from Bloomberg indicate the administration is considering collaborative arrangements with private sector entities to launch stablecoin initiatives in foreign markets, which may include participation from the Treasury Department, State Department and US International Development Finance Corporation (DFC).