REGULATION | U.S Accounting Board Proposes Rules for Classifying Stablecoins as Cash Equivalents

The U.S. Financial Accounting Standards Board (FASB) has proposed guidance that could allow companies to classify certain stablecoins as cash equivalents potentially improving their use in corporate treasury and payment operations. The Board is issuing this proposed update to: Clarify whether certain digital assets meet the definition of the term ‘cash equivalents’ and reduce diversity in practice, and Increase transparency of the significant components of cash equivalents. REGULATION | The European System of Central Banks Seeks Minimum Liquidity Thresholds for Stablecoin Reserves Under the proposal, stablecoins would need to meet 3 key conditions: holders must have a contractual right to…