FASB sets criteria for treating stablecoins as cash equivalents

The Financial Accounting Standards Board has outlined criteria under which certain stablecoins can be recognized as cash equivalents, CoinDesk reported. The nonprofit body, which sets U.S. Generally Accepted Accounting Principles, said qualifying stablecoins must meet three conditions: issuers must hold highly liquid reserve assets equal to or greater than the amount of stablecoins in circulation, disclose the composition of those reserves annually, and allow redemption into U.S. dollars at any time. The move is significant for how U.S. companies determine the accounting treatment of dollar-pegged stablecoins and also expands the cryptocurrency-related accounting policies the FASB is building.