The U.S. Financial Accounting Standards Board has proposed guidance clarifying how existing cash-equivalent rules could apply to certain digital assets, including stablecoins. The proposal would not automatically qualify all stablecoins or change the underlying definition. A stablecoin could qualify if holders can demand direct redemption from the issuer for a fixed amount of cash and the issuer holds reserve assets greater than the circulating supply in cash or short-term, highly liquid assets such as U.S. Treasuries maturing within three months. FASB said it considered the GENIUS Act framework for payment stablecoins, which requires licensed issuers to maintain reserves of at least 100% in cash, demand deposits or short-term U.S. Treasuries. Circle Chief Executive Officer Jeremy Allaire called the proposal a "huge strategic breakthrough" and said the FASB rules, together with the GENIUS Act, could support broader use of USDC and other digital dollars by companies and financial institutions worldwide. The proposal also seeks more consistent application and enhanced disclosures on cash-equivalent holdings. It could reduce accounting uncertainty and support institutional use in payments, treasury management and digital settlement, but would not constitute regulatory approval, legal-tender status or a replacement for traditional currency.