stable coins
By James Thorp
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Why Secondary Markets Don't Cut It. Here's where it gets interesting for traders and treasury teams.
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Companies Keep Some Discretion — But Not Much. There's one piece of flexibility buried in the proposal.
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Comment Deadline and What Happens Next. FASB is taking public comments until November 19. After that, the board will go through whatever…
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The Financial Accounting Standards Board wants to change how companies book stablecoins on their balance sheets.
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FASB's proposal lays out a three-part test. A stablecoin has to carry an on-demand contractual redemption right.
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Here's where it gets interesting for traders and treasury teams. FASB made a point of saying that secondary-market liquidity alone won't do it.
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That distinction matters more than it sounds. A lot of companies holding stablecoins have been relying on the assumption that liquid markets are basically the same thing as…
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And the reserves question is just as sharp. Stablecoins backed by crypto assets or gold? Out.
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There's one piece of flexibility buried in the proposal. Companies that do have qualifying stablecoins won't be forced to present them as cash equivalents.
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See also: SEC Cancels Crypto Rulemaking Meeting as White House and Wall Street Push Back
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That's probably going to generate some interesting accounting conversations inside corporate treasury departments.
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The broader context here is that digital asset accounting has been a mess for years. Companies holding Bitcoin, Ethereum, or stablecoins have had to navigate guidance that wasn't…
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FASB is taking public comments until November 19. After that, the board will go through whatever feedback it gets from companies, auditors, industry groups, and anyone else who…
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The comment period is genuinely important here. Stablecoin issuers, corporate treasury teams, and accounting firms all have skin in this game.
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Read also: Compound Finance Drops $52M and Three New Executives in Institutional Pivot
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