Original Title: Accounting Rulemaker to Delve Into Crypto in 2026 Amid Trump Push
Original Author: Mark Maurer, THE WALL STREET JOURNAL
Translated by Ismay, BlockBeats
Editor's Note: The Financial Accounting Standards Board (FASB) has included the questions of "whether stablecoins can be considered cash equivalents" and "how to account for transfers of crypto assets" in its 2026 work priorities. While these may appear to be technical accounting issues, they reflect a deeper tug-of-war among regulators, policymakers, and capital markets regarding the legitimacy of crypto assets. On one hand, the Genius Act is pushing stablecoins toward mainstream institutional adoption. On the other hand, GAAP (Generally Accepted Accounting Principles) still contains many gray areas—particularly regarding when assets are considered "derecognized," and how cross-chain transactions and wrapped tokens should be classified. As a result, there is currently no consistent reporting standard for corporate financial statements.
For investors, the true significance of this discussion goes beyond whether it can be considered cash—it lies in risk disclosure, transparency, and comparability. When stablecoins resemble both cash and financial products, financial statements must provide clearer boundaries.
The following is the original content:
The Financial Accounting Standards Board (FASB) stated that it will study two cryptocurrency-related issues in 2026: whether certain crypto assets could be classified as "cash equivalents," and how to account for the transfer of crypto assets. These topics will be discussed against the backdrop of increased support for such investments under the Trump administration.
Over the past few months, the FASB added the two cryptocurrency projects mentioned above to its agenda based on public feedback. These issues are among the earliest of more than 70 topics that the FASB will consider for inclusion on its agenda; some of these topics may eventually develop into new accounting standards.
The FASB stated that it expects to decide on the selection of more than 70 potential agenda items by the end of this summer. These items originated from an "agenda consultation," during which companies, investors, and others can submit letters to indicate which issues they would like the FASB to prioritize.
"Many people have invested a great deal of time and effort to help us shape our work agenda," said Chair Rich Jones. "I see 2026 as the year to turn these ideas into action and fulfill our commitments."
In October last year, the FASB included the issue of "cash equivalents" on its agenda, with a particular focus on certain stablecoins—assets that are typically pegged to a fiat currency.
This move occurred three months after President Trump signed a stablecoin regulatory bill into effect. The bill established a regulatory framework for stablecoins, further integrating such assets into the mainstream financial system. Jones stated that the bill, known as the "Genius Act," did not resolve the accounting question of "what can be considered cash equivalents." He also emphasized, "It is just as important to inform people what does not qualify as a cash equivalent as it is to tell them what does."
President Trump himself and his family have interests in World Liberty Financial, a cryptocurrency company. He has introduced a series of policies supporting the cryptocurrency industry and halted previous regulatory crackdowns on the sector.
In November last year, the FASB voted to study how companies account for the transfer of crypto assets, including "wrapped tokens"—tokens that allow crypto assets on one blockchain to be represented and used in a "mapped" form on another chain.
This project will be based on the requirements proposed by the FASB in 2023: the use of fair value measurement when companies account for Bitcoin and other crypto assets. That rule filled a gap in U.S. Generally Accepted Accounting Principles (GAAP), but it does not cover non-fungible tokens (NFTs) or certain stablecoins.
Although encryption-related accounting requirements were proposed in 2023, some still believe that the specific details are not clear.
Scott Ehrlich, a director and managing partner at accounting training and consulting firm Mind the GAAP, said, "I still believe there is a significant gap in GAAP regarding a key issue: under what circumstances should encrypted assets be removed from, or de-recognized from, the balance sheet, and under what circumstances they should not be."
Both initiatives follow recommendations from a working group established by President Trump to support the cryptocurrency industry and also respond to public feedback. Jones stated that these recommendations echo views already held by some stakeholders of the FASB.
Jones said he did not feel pressured to adopt the recommendations of the task force.
"I am certainly pleased that they believe the way to resolve accounting issues is to submit these proposed topics to the FASB for evaluation," Jones said. "They did not suggest pushing for legislation to address accounting issues, nor did they suggest having the SEC step in to set the tone for accounting treatment."
The SEC is responsible for enforcing the accounting standards established by the FASB for publicly traded companies.
This securities regulator will also closely monitor any adjustments made by the FASB. Kurt Hohl, the SEC's Chief Accountant, stated at a meeting earlier this month: "There are a lot of issues in the crypto space. The challenge is that they don't fit neatly into the existing accounting framework."
Lawmakers and investors occasionally express concerns about the way the FASB establishes its accounting standards. Recently, the organization came under scrutiny from U.S. House Republicans, who suggested that if the FASB did not withdraw an upcoming tax disclosure requirement, its funding should be frozen. Under the new requirement, publicly traded companies are preparing to disclose more detailed information about the income taxes they pay to government agencies in their annual reports for 2025.
Some observers question whether the ownership of crypto assets has become widespread enough to be included on the FASB's agenda. Companies that list Bitcoin on their balance sheets are still few, such as Tesla, Block, and MicroStrategy.
"These new cryptocurrency projects appear to be driven more by current political priorities than by prevalence or other established criteria set by the FASB for initiating projects," said Sandy Peters, head of the Financial Reporting Policy team at the CFA Institute, which represents investment professionals.
However, with the implementation of the "Genius Act" in 2027, newly established regulatory safeguards are expected to reduce the volatility of stablecoins, and interest in stablecoins is anticipated to increase in the market. Peters stated, but without more comprehensive risk disclosures, investors are unlikely to accept stablecoins as cash equivalents.
As the FASB chair, Jones also faces a "countdown clock." His seven-year term is expected to end in June 2027, and the selection of a successor will begin in early 2026.
Jones said that over the remaining 18 months or so, he hopes the committee will initiate and complete an accounting standard on how to distinguish between "liabilities" and "equity." This determination is very complex for certain instruments such as warrants, and both companies and audit firms consider it highly challenging.
Jones stated that the project has not yet been formally added to the agenda, but there is still a chance to complete it within the aforementioned timeframe, as the committee can choose to make "targeted improvements" rather than developing an entirely new model. "I would really like to finish it before I step down," he said.
"Hello, I amOriginal article link"」" is a
Click to learn about BlockBeats' job openings.
Welcome to join the official Lulin BlockBeats community:
Telegram Subscription Group:https://t.me/theblockbeats
Telegram discussion group:https://t.me/BlockBeats_App
Official Twitter account:https://twitter.com/BlockBeatsAsia