The FASB mentioned secondary-market liquidity alone wouldn’t be sufficient, with holders needing direct issuer redemption rights and one-to-one liquid reserves.
The Monetary Accounting Requirements Board (FASB) has proposed steering outlining when corporations could classify sure stablecoins as money equivalents underneath typically accepted accounting ideas in america.
On Tuesday, the FASB mentioned the proposed Accounting Requirements Replace would add illustrative examples to the present definition, addressing inconsistent remedy of digital property resembling stablecoins. The definition itself would stay unchanged.
The proposal says a qualifying digital asset would want an on-demand contractual redemption proper, a direct redemption proper with its issuer for a recognized money quantity and a minimum of one-to-one segregated reserves held in short-term, extremely liquid property.
Learn extra