The accounting reform of US may make stablecoins more attractive to companies: Tempo

Tempo reports that the U.S. Accounting Standards Board's proposed accounting rules may allow companies to hold stablecoins as cash equivalents

Tempo, a blockchain network backed by Stripe, has reported that the Financial Accounting Standards Board's accounting recommendations in the US could remove significant barriers to stablecoin adoption in the corporate sector by allowing qualified tokens to be listed as cash equivalents on company balance sheets.

What does this offer solve?
The report mentions a draft revision of accounting standards proposed by the Financial Accounting Standards Board in August, which could make stablecoins more practical for corporate money management. In current accounts, holding stablecoins may not count as cash that companies report, contributing to liquidity ratios and credit conditions even if tokens are fully backed with dollars at face value. If this change occurs, companies can use stablecoins for payments and settlements without such accounting restrictions.USDC

The key condition is the right of direct withdrawal.
Tempo notes that, according to the committee's proposal, companies must have a right of redemption directly with stablecoin issuers. For example, buying through an exchange does not always allow companies to classify tokens as cash equivalents. Tempo points out that "a contract with an issuer is what qualifies and a token alone doesn't".

Case Coinbase and the Circle were cited.
The report refers to Coinbase , which categorizesUSDC and other stablecoins for payment as cash equivalents in the annual report,2025 supported by a withdrawal agreement with Circle.

The next step.
The committee's proposal is still open for public comment until Nov. 19, after which the committee will review comments before finalizing accounting changes and setting an effective date.

It's all about regulations and markets.
The proposal comes after the passage of the GENIUS Act in July 2009,2025 which set a first-ever comprehensive federal regulatory framework for stablecoins to be paid out in the U.S. Such legislation is scheduled to go into effect in January 2010,2027 or 120 days after federal regulators finalize their final rule, whichever occurs first.
The GENIUS Act sets out conditions for stablecoin issuers, including funding with reserve assets and liabilities on redemption, while the commission's proposal focuses on how companies record accounts for stablecoins held.
The move comes at a time when the U.S. dollar-backed stablecoin market is valued in excess of US$4 trillion, according to data from DefiLlama .300,000 Additionally, the Trump administration has reportedly been considering ways to promote overseas dollar backed stablecoins that could bolster the role of the United States dollar as the primary reserve currency.US
According to a Bloomberg report, the administration is weighing collaboration with private companies for developing stablecoin projects overseas, possibly involving the U.S. Department of Treasury, the United States State Department andUS International Development Finance Corporation.[6]