Are stablecoins considered cash? After the passage of the GENIUS Genius Act, accounting standards may undergo adjustments.

FASB will study whether stablecoins qualify as cash equivalents and how to account for crypto transfers in 2026, filling gaps in GAAP under the push of the “Genius Act,” affecting corporate disclosures and comparability.

Editor’s note: The Financial Accounting Standards Board (FASB) has included “whether stablecoins can be considered cash equivalents” and “how to account for crypto asset transfers” as key focus areas for 2026. While these seem like technical accounting issues, they are actually part of a tug-of-war involving regulation, politics, and capital markets’ efforts to legitimize crypto assets: on one side, the “Genius Act” is pushing stablecoins into mainstream institutionalization; on the other, GAAP still has many gray areas—especially regarding when assets are “derecognized” and how to define cross-chain and wrapped tokens—leading to inconsistent financial reporting.

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

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

Over the past few months, FASB has added these two crypto items to its agenda based on public feedback. They are among the first of over 70 issues FASB is considering for potential inclusion; some may develop into new accounting standards in the future.

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

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

Last October, FASB included the issue of “cash equivalents” on its agenda, focusing on 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 resolve the accounting question of “what can be considered a cash equivalent.” He emphasized: “Telling people what doesn’t qualify as a cash equivalent is just as important as telling them what does.”

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

In November last year, FASB voted to study accounting for crypto asset transfers, including “Wrapped Tokens”—tokens that allow crypto assets on one blockchain to be represented and used on another via “mapping.”

This project will build on FASB’s 2023 proposal requiring companies to measure Bitcoin and other crypto assets at fair value. That rule filled a gap in US GAAP but did not cover non-fungible tokens (NFTs) or certain stablecoins.

Despite the 2023 crypto-related accounting proposals, some still find the details unclear.

Scott Ehrlich, Managing Director of accounting training and consulting firm Mind the GAAP, said: “I still believe there’s 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?”

Image source: The Wall Street Journal

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 views held by some stakeholders of FASB.

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

“Of course, I’m 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 ask the SEC to make statements to set accounting standards.”

The SEC oversees the implementation of FASB’s accounting standards for publicly traded companies. The agency will closely monitor any adjustments made by FASB. SEC Chief Accountant Kurt Hohl recently said in a meeting: “There are many issues in crypto. The challenge is that they don’t fit neatly into existing accounting frameworks.”

Congressional members and investors sometimes express concerns about FASB’s standard-setting approach. Recently, the agency faced scrutiny from Republican members of the House of Representatives, who proposed freezing funding if FASB does not withdraw upcoming tax disclosure requirements. 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 holdings have become widespread enough to enter FASB’s agenda. Companies like Tesla, Block, and MicroStrategy still hold significant amounts of Bitcoin on their balance sheets.

“These new crypto projects don’t seem driven by widespread adoption or other established FASB criteria; rather, they are more influenced by current political priorities,” said Sandy Peters, head of the Financial Reporting Policy team at the CFA Institute, which represents investment professionals.

However, with the “Genius Act” taking effect in 2027, newly established regulatory safeguards are expected to reduce stablecoin volatility, likely boosting market interest. Peters noted that without more comprehensive risk disclosures, investors are unlikely to treat stablecoins as cash equivalents.

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

Jones said that in the remaining roughly 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 instruments like stock warrants, and both companies and auditors find it challenging.

He added 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.

• This article is reprinted with permission from: Marsbit
• Original title: “Accounting Rulemaker to Delve Into Crypto in 2026 Amid Trump Push”
• Original author: Mark Maurer
• Translation: Mars Finance