US accounting overhaul could make stablecoins more attractive to companies: Tempo

A Tempo report examines how proposed US accounting rules could change corporate stablecoin holdings, with direct redemption rights determining which tokens are eligible for cash.

A new report from Stripe-backed Tempo Blockchain argues that a proposed US accounting change could pose a major obstacle to corporate stablecoin adoption by allowing eligible tokens to be classified as cash equivalents on company balance sheets.

The report examines an accounting standards update proposed by the Financial Accounting Standards Board (FASB) in August that could make stablecoins more applicable to corporate treasury operations. Under current accounting practices, stablecoin holdings may not be counted in a company's reported cash reserves, affecting liquidity ratios and loan obligations, even when the tokens are fully backed by dollars.

The proposed change could allow companies to use stablecoins for payments and settlements without those accounting complications.

According to Tempo, the FASB proposal would require companies to have direct repurchase rights with stablecoin issuers. For example, buying USDC through an exchange does not necessarily allow the company to classify those tokens as cash equivalents.

Tempo points to Coinbase classifying USDC and other payment stablecoins as cash equivalents in its 2025 annual report, supported by a buyback arrangement with Circle.

"Your contract with the issuer is qualified, and the token alone won't get you there," Tempo said.

The FASB's proposal is open for public comment until November 19. The Board will consider feedback before finalizing the accounting changes and setting an effective date.

The FASB proposal follows the passage of the GENIUS Act in July 2025, which would create the first comprehensive federal regulatory framework for payment stablecoins in the United States. The law is scheduled to take effect in January 2027 or 120 days after federal lawmakers finalize implementing rules, whichever comes first.

While the GENIUS Act sets requirements for stablecoin issuers, including backup obligations and reserve redemptions, the FASB proposal addresses how companies account for the stablecoins they hold.

These developments come as the US dollar-backed stablecoin market surpasses $300 billion, according to DefiLlama data. The Trump administration is also reportedly considering ways to promote dollar-backed stablecoins abroad, potentially strengthening the U.S. dollar's role as the dominant reserve currency.

According to Bloomberg, the administration is considering partnerships with private companies to develop stablecoin projects overseas, potentially including the Treasury Department, the State Department and the US Development Finance Corporation (DFC).