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Ethereum: FASB Sets Three Tests for Stablecoin Cash Equivalents
Bitcoin slipped 0.9 percent to 78885 dollars on Monday while Ethereum held near 2474 dollars as regulators clarified stablecoin accounting standards.
Bitcoin traded at 78885 dollars after a 0.9 percent decline on the day while Ethereum sat at 2473.79 dollars with a 0.1 percent drop. XRP fell 1.6 percent to 1.39 dollars. Solana lost 1.9 percent to 103.52 dollars. Dogecoin rose 0.6 percent to 0.089306 dollars according to CoinGecko data at midday.
The Federal Accounting Standards Board released its August 18 proposal under Topic 230 that sets three tests for stablecoins to qualify as cash equivalents under U.S. GAAP. Stablecoin Insider reported the details. Comments on the proposal close November 19.
The three tests require on-demand contractual redemption rights, a direct claim against the issuer for a known cash amount, and segregated reserves held at a one-to-one ratio in short-term highly liquid assets. Secondary market trading alone does not satisfy the criteria. The guidance also introduces an annual disclosure requirement for cash-equivalent components.
Majors showed limited reaction to the announcement. Bitcoin candles remained in a narrow range near recent levels while Ethereum held support around 2470 dollars. XRP and Solana posted modest losses consistent with broader altcoin movement. Dogecoin recorded the only gain among the tracked assets.
Ownership of stablecoins that meet the three tests would allow holders to treat qualifying balances as cash equivalents on financial statements. Utility expands for treasuries and trading desks that require GAAP-compliant liquidity measurement. The proposal does not alter existing Federal Reserve aggregate measures and stays separate from exchange-traded fund flow reports.
Market participants can review the full text on the Stablecoin Insider site and the Crowe analysis page. CoinGecko supplied the price snapshot. The changes would affect how corporate balance sheets record certain stablecoin holdings once final rules take effect.
Price action across the majors stayed orderly with no sharp breaks in either direction after the release. Bitcoin continued to range while smaller majors such as Solana saw slightly larger percentage moves. The overall session reflected typical Monday liquidity rather than a reaction-driven shift.
The three redemption and reserve conditions focus attention on issuer structure rather than trading venue depth. Projects that already maintain segregated short-term assets and direct redemption channels stand to benefit from clearer classification. Annual component disclosures would give readers additional visibility into reserve composition without introducing new aggregate money supply metrics.
Trading desks that hold stablecoins for settlement or collateral can assess the tests against current holdings. The guidance supplies a consistent framework for U.S. GAAP reporting while leaving room for public comment through mid-November.