FASB sets 3 tests for stablecoins to qualify as cash

The Financial Accounting Standards Board (FASB) proposed new U.S. accounting guidance on Aug. 18 that would clarify when companies may present certain stablecoins as cash equivalents. The proposed Accounting Standards Update would add examples to Topic 230, Statement of Cash Flows, without changing the existing definition of cash equivalents under U.S. GAAP. The proposal is open for public comment through Nov. 19, after which the board will decide whether to issue a final standard and set its effective date.