Stablecoin Project Gains US Accounting Board’s Approval (1)

Companies are set to gain more insight from the US accounting standard-setter on whether buzzy digital coins can be treated similarly to cash in financial reports.

The majority of Financial Accounting Standards Board members voted Wednesday to add a project to their technical agenda focused on clarifying whether certain stablecoins and similar assets can qualify as cash equivalents on corporate balance sheets. Cash equivalents are highly liquid, short-term investments like US Treasury bills.

A lack of authoritative accounting guidance has led to uncertainty and variety in stablecoins’ classification, some have told FASB in public input.

“The diversity in practice obviously ...