FASB Advances Work on Stablecoin Cash-Equivalent Treatment, Brings Wrapped Tokens Under Fair-Value Rules

The Financial Accounting Standards Board (FASB, @FAFNorwalk) on April 15 moved forward with potential new crypto accounting guidance. The board directed staff to draft a proposed standard that would allow certain digital assets to be classified as cash equivalents, followed by a 90-day public comment period. Rather than revising the definition of "cash equivalents," FASB opted to specify examples. Eligibility would hinge on factors such as the composition of reserve assets and contractual, on-demand redemption rights directly with the issuer, a framing aligned with the GENIUS Act standards. In a separate project focused on transfers, FASB decided that wrapped tokens should fall within the fair-value measurement framework established by the 2023 standard. Companies with significant positions would need to provide separate tabular disclosures. Guidance on derecognition is expected to be addressed at a future meeting.