FASB seeks public input on digital asset cash equivalent rules

The Financial Accounting Standards Board published a proposed Accounting Standards Update on August 18, 2026, that could reshape how every public company in America reports stablecoins on its balance sheet. The update targets Topic 230, the section of US accounting law that governs cash flow statements, and specifically zeroes in on when digital assets qualify as cash equivalents. The 90-day public comment window runs through November 19, giving corporate treasurers, auditors, crypto firms, and anyone else with an opinion a chance to weigh in before anything becomes final. What FASB is actually proposing FASB isn’t rewriting the definition of cash equivalents. It’s keeping the existing definition exactly as-is and then adding illustrative examples that show how to apply that definition to digital assets like stablecoins. Beyond the examples, the proposal introduces mandatory enhanced disclosures. Any entity that reports cash equivalents, not just crypto-native firms, would need to break out significant classes and amounts of those equivalents in its financial statements. Companies presenting digital assets as cash equivalents face additional scrutiny. For the transition mechanics, ...