The Financial Accounting Standards Board (FASB) will study whether stablecoins can be considered cash equivalents and how to account for the transfer of crypto assets in 2026. Behind this discussion are the tug-of-war between regulation, politics, and capital markets for legitimizing crypto assets, which concerns risk disclosure, transparency, and comparability. This article is based on an original piece by Mark Maurer, organized, compiled, and written by BlockBeats.
(Background summary: South Korea delays “Korean Won stablecoin” launch, missing out on Asia’s first issuance; banks and the Financial Services Commission have diverging opinions)
(Additional background: PBOC Governor Pan Gongsheng: Insist on cracking down on cryptocurrencies! Stablecoins are still in early development, actively promoting digital renminbi development)

Table of Contents

• FASB to study accounting treatment of crypto assets
• Can stablecoins be considered cash equivalents?
• Accounting treatment of crypto asset transfers
• FASB independence and political influence
• Controversies over crypto asset accounting standards
• FASB Chair’s term countdown and future plans

Editor’s note: The U.S. Financial Accounting Standards Board (FASB) has included “whether stablecoins can be considered cash equivalents” and “how to account for crypto asset transfers” in its 2026 work priorities. While these seem like technical accounting issues, they are actually a tug-of-war between regulation, politics, and capital markets for legitimizing crypto assets: on one side, the “Genius Act” pushes stablecoins toward mainstream institutionalization; on the other, GAAP still has many gray areas—especially regarding when assets are “derecognized” and how cross-chain and wrapped tokens are defined, leading to inconsistent financial reporting.

For investors, the real significance of this discussion is not just “whether they can be counted as cash,” but also risk disclosure, transparency, and comparability: as stablecoins become more like cash and financial products, financial statements must provide clearer boundaries.

Below is the original content:

FASB to study accounting treatment of crypto assets

The U.S. Financial Accounting Standards Board (FASB) announced that in 2026 it will examine two crypto-related issues: whether certain crypto assets can be recognized as “cash equivalents,” and how to account for crypto asset transfers. Against the backdrop of the Trump administration’s increased support for such investments, these topics will be included in discussions.

Over the past few months, FASB has added these two crypto items to its agenda based on public feedback. These issues are among the earliest of more than 70 topics FASB is considering; some may develop into new accounting standards in the future.

FASB stated that it expects to decide on the prioritization of these over 70 potential topics by the end of summer this year. These topics originated from a “agenda consultation,” where companies, investors, and others can submit letters indicating which issues they want FASB to prioritize.

“Many people have invested a lot of time and effort to help us develop our agenda,” said Chair Rich Jones. “I see 2026 as the year to turn these opinions into action and fulfill our commitments.”

( Can stablecoins be considered cash equivalents?

In October last year, FASB included the question of “cash equivalents” in its agenda, focusing on certain stablecoins—assets typically pegged to a fiat currency.

This move came three months after President Trump signed into law a stablecoin regulation bill. The law established a regulatory framework for stablecoins, further integrating these assets into the mainstream financial system. Jones noted that the so-called “Genius Act” does not address the accounting question of “what can be recognized as cash equivalents.” He emphasized, “It’s just as important to tell people what does not meet the criteria as it is to tell them what does.”

President Trump and his family have interests in World Liberty Financial, a crypto company; he has introduced policies supporting the crypto industry and halted previous regulatory crackdowns.

) Accounting treatment of crypto asset transfers

In November last year, FASB voted to study how companies should account for crypto asset transfers, including “wrapped tokens”—tokens that allow crypto assets on one blockchain to be represented and used on another.

This project will build on FASB’s requirements proposed in 2023: companies should measure Bitcoin and other crypto assets at fair value. This rule filled a gap in U.S. GAAP but does not cover non-fungible tokens (NFTs) or certain stablecoins.

Although crypto-related accounting requirements were proposed in 2023, some still believe the specifics are unclear.

Scott Ehrlich, Managing Director of accounting training and consulting firm Mind the GAAP, said, “I still believe there is a significant gap in GAAP on a key issue: when should we derecognize crypto assets from the balance sheet—that is, when should we terminate recognition; and when should we not?”

( FASB independence and political influence

Both projects follow recommendations from a working group established by President Trump to support the crypto industry, also responding to public feedback. Jones said these suggestions align with some existing views among FASB stakeholders.

He stated he was not pressured to adopt the working group’s recommendations.

“I’m obviously pleased that they think the way to address accounting issues is to have FASB evaluate these topics,” Jones said. “They did not suggest legislative action or for the SEC to step in and set accounting standards.”

The SEC oversees the implementation of FASB’s standards for publicly traded companies.

The agency will closely monitor any adjustments made by FASB. Kurt Hohl, Chief Accountant of the SEC, said earlier this month: “There are a lot of issues in the crypto space. The challenge is that they don’t fit neatly into the existing accounting standards framework.”

) Controversies over crypto asset accounting standards

Legislators and investors occasionally express concerns about FASB’s standard-setting approach. Recently, the agency was scrutinized by Republican members of the U.S. House of Representatives: they proposed that if FASB does not withdraw upcoming tax disclosure requirements, its funding should be frozen. Under the new rules, public companies are preparing to disclose more details about their income tax payments to government agencies in their 2025 annual reports.

Some observers question whether crypto asset holdings have become widespread enough to warrant inclusion in FASB’s agenda. Companies like Tesla, Block, and Strategy still hold Bitcoin on their balance sheets.

“These new crypto projects don’t seem driven by adoption levels or other established FASB criteria; rather, they are more driven 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” coming into effect in 2027, newly established regulatory safeguards are expected to reduce stablecoin volatility, and market interest in stablecoins is likely to increase. Peters noted that without more comprehensive risk disclosures, investors are unlikely to treat stablecoins as cash equivalents.

FASB Chair’s term countdown and future plans

As FASB Chair, Jones also faces a “time countdown.” His seven-year term is scheduled to end in June 2027, with the selection of his successor beginning in early 2026.

Jones said that over the remaining approximately 18 months, he hopes the board can initiate and complete a standard on how to distinguish “liabilities” from “equity.” This judgment is particularly complex for tools like stock options, and both companies and auditors find it challenging.

He stated that this project is not yet officially on the agenda but could be completed within the timeframe, as the board can choose to make “targeted improvements” rather than develop a whole new model. “I really hope to finish it before I leave,” he said.

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