Is a Stablecoin Considered Cash? Accounting Treatment of Stablecoins May Be Adjusted Post-Genius Act
Original Title: Accounting Rulemaker to Delve Into Crypto in 2026 Amid Trump Push
Original Author: Mark Maurer, THE WALL STREET JOURNAL
Original Translation: Ismay, BlockBeats
Editor's Note: The U.S. Financial Accounting Standards Board will include "Whether Stablecoins Can Be Considered Cash Equivalents" and "How to Account for the Transfer of Crypto Assets" in its 2026 agenda. While these may seem like technical accounting issues, behind them lies a tug-of-war among regulation, politics, and the legitimization of crypto assets in the capital markets: on one side, the Genius Act is pushing stablecoins into the mainstream institutionalized process, while on the other, GAAP still has many gray areas—especially regarding when assets should be "derecognized" and how to define cross-chain and wrapped tokens, leading to inconsistencies in corporate financial reporting.
For investors, the true significance of this discussion is not just "whether it can be considered cash," but rather risk disclosure, transparency, and comparability: as stablecoins become more like cash and financial products, financial statements must provide clearer boundaries.
The following is the original content:
The U.S. Financial Accounting Standards Board (FASB) has stated that it will research two crypto-related issues in 2026: whether certain crypto assets could be deemed "cash equivalents" and how to account for the transfer of crypto assets. Against the backdrop of increased Trump administration support for such investments, these issues will be up for discussion.
In recent months, FASB has added the aforementioned two crypto projects to its agenda based on public feedback. These issues are among the earliest batch of over 70 topics that FASB is considering for inclusion in its agenda; some of these topics may evolve into new accounting standards in the future.
FASB has stated that it expects to decide on the prioritization of these over 70 potential topics by the end of this summer. These topics stem from an agenda consultation where businesses, investors, and others can submit letters explaining what matters they would like FASB to address first.
"Many people have dedicated significant time and effort to help us set the work agenda," said Chairman Rich Jones. "I see 2026 as the year to translate these opinions into action and deliver on our commitments."
In October of last year, FASB added the issue of "Cash Equivalents" to its agenda, with a specific focus on certain stablecoins—assets that are usually pegged to a specific fiat currency.
This action took place as former President Trump signed a stablecoin regulation bill into law three months earlier. The bill established a regulatory framework for stablecoins, further integrating these assets into the mainstream financial system. Jones stated that the bill, known as the "Genius Act," did not address the accounting question of "what qualifies as a cash equivalent" and emphasized, "Telling people what does not meet the cash equivalent standard is just as important as telling them what does."
Former President Trump himself and his family have interests in the cryptocurrency company World Liberty Financial; he has rolled out a series of policies supporting the crypto industry and halted previous regulatory crackdowns on the industry.
In November of last year, FASB voted to explore the accounting treatment of enterprises' transfers of crypto assets, including "wrapped tokens"—tokens that enable cryptocurrency assets on one blockchain to be represented and used on another chain through "wrapping."
The project will be based on requirements set by FASB in 2023: companies are to account for Bitcoin and other crypto assets using fair value measurement. This rule fills a gap in the U.S. Generally Accepted Accounting Principles (GAAP) but does not cover non-fungible tokens (NFTs) and certain stablecoins.
Despite the 2023 accounting requirements related to crypto assets, some still find the specific guidelines unclear.
Scott Ehrlich, Managing Director of the accounting training and consulting firm Mind the GAAP, said, "I still believe that there is a significant gap in GAAP on a key issue: under what circumstances should we de-recognize crypto assets from the balance sheet, i.e., cease recognition, and when should we not."
Both of these projects followed recommendations from a working group established by former President Trump to support the crypto industry and also responded to public feedback. Jones stated that these recommendations align with some views held by certain FASB stakeholders.
Jones said he did not feel pressured to adopt the working group's recommendations.
"I certainly appreciate that they felt that the way to address these accounting issues was to have these issues suggested for consideration by the FASB," Jones said. "They did not suggest pushing for legislation to address accounting issues, nor did they suggest having the SEC come out and speak to set the tone for accounting treatment."
The SEC is responsible for enforcing the accounting standards set by the FASB for publicly traded companies.
This securities regulatory agency will also closely monitor any adjustments made by the FASB. SEC Chief Accountant Kurt Hohl stated at a meeting earlier this month, "There are a whole host of issues in the crypto area. The challenge is that they don't neatly fit within the existing accounting framework."
Legislators and investors occasionally express concerns about the way FASB sets its standards. Recently, the organization came under scrutiny by House Republicans in the U.S., who proposed that if FASB does not withdraw its upcoming tax disclosure requirement, its funding should be frozen. Under the new requirement, publicly traded companies are preparing to disclose more details about their income tax payments to government agencies in their 2025 annual reports.
Some observers question whether the prevalence of holding crypto assets has reached a level significant enough to enter FASB's agenda. Companies that include Bitcoin on their balance sheets are still in the minority, such as Tesla, Block, and Strategy.
"These new crypto projects do not appear to be driven by prevalence or other established FASB project criteria, but more so by current political priorities," said Sandy Peters, head of the Financial Reporting Policy team at the CFA Institute representing investment professionals.
However, with the Genius Act set to go into effect in 2027, the newly established regulatory guardrails are expected to reduce the volatility of stablecoins, and the market's interest in stablecoins is expected to rise. Peters noted that without more comprehensive risk disclosure, investors are unlikely to accept stablecoins as cash equivalents.
As FASB Chairman, Jones is also facing a "countdown." His seven-year term is expected to end in June 2027, with the selection of his successor set to begin in early 2026.
Jones stated that over the next approximately 18 months, he hopes the committee can initiate and complete a project on how to differentiate between "liabilities" and "equity" in accounting standards. This distinction is very complex for certain instruments like stock warrants, and both companies and audit firms find it challenging.
Jones mentioned that this project has not yet been formally included in the agenda, but there is still a possibility of completion within the mentioned timeframe because the committee can opt for "targeted improvements" rather than establishing an entirely new model. "I really hope to get it done before I step down," he said.
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