The Financial Accounting Standards Board (FASB) announced plans to study two crypto-related issues in 2026: whether certain stablecoins can be classified as cash equivalents, and how to account for crypto asset transfers. The decision comes three months after President Trump signed the Genius Act into law, which established a regulatory framework for stablecoins but left the accounting definition of cash equivalents unresolved. FASB Chairman Rich Jones stressed that telling the market what does NOT qualify as cash equivalent is as important as telling them what does.
Stablecoin Cash Equivalent Debate: GAAP Gray Zone
FASB added the cash equivalent topic to its agenda in October 2025, focusing on stablecoins pegged to fiat currencies. The current U.S. GAAP lacks clear guidance, leaving companies like Tesla, Block, and Strategy with inconsistent treatment. Jones noted that the Genius Act did not address the accounting question, and the board will decide whether to issue new standards. The move is part of a broader push to bring crypto assets into mainstream financial reporting, but critics argue that adoption remains too limited to justify FASB's priority.
Crypto Asset Transfers: Wrapped Tokens and Derecognition
The second project examines accounting for crypto asset transfers, particularly wrapped tokens that allow assets to move across blockchains. It builds on FASB's 2023 rule requiring fair value measurement for bitcoin and other crypto assets, which excluded NFTs and some stablecoins. Scott Ehrlich, managing director of Mind the GAAP, said GAAP still has a huge gap on when to derecognize crypto assets from the balance sheet. The board hopes to clarify the timing and conditions for removing these assets, a critical issue for companies engaging in cross-chain operations.
Political Influence and FASB Independence
Both projects align with recommendations from the president's crypto working group, but Jones denied any pressure to adopt them. He welcomed that the group chose to route accounting issues through FASB rather than push for legislation or SEC guidance. SEC Chief Accountant Kurt Hohl acknowledged the difficulty: crypto issues don’t neatly fit into existing accounting frameworks. Some observers, like Sandy Peters of the CFA Institute, questioned whether crypto holdings are widespread enough to warrant FASB attention, suggesting political priorities drove the agenda rather than standard-setting criteria.
Jones's term ends in June 2027, with successor selection starting in early 2026. He hopes to complete a targeted improvement on the liability-equity distinction before stepping down, though that project hasn't been formally added to the agenda yet.