On August 4, 2025, the U.S. Securities and Exchange Commission (SEC) released a new staff guide updating accounting rules for U.S. dollar-pegged stablecoins. This guide, as reported by Bloomberg, outlines the criteria for considering certain stablecoins with guaranteed redemption mechanisms and 1:1 value pegged to another asset class as “cash-like assets.” This update follows interim measures from April that removed SEC registration requirements for the issuance and redemption activities of these stablecoins. The latest guidance is part of SEC Chair Paul Atkins’ initiative to reduce restrictive barriers and provide market clarity.Specific Accounting Details for Stablecoins
The new guidance stipulates two conditions for companies to classify U.S. dollar-pegged stablecoins as “cash-like assets” on their balance sheets. First, the issuer must guarantee redemption in U.S. dollars on demand. Second, the stablecoin’s value should be fully collateralized by another asset (usually cash or Treasury bonds). Meeting these conditions aligns with traditional cash management principles, streamlining financial reporting controls, and enhancing transparency for investors.
The guidance also offers a roadmap for auditing firms. Issuers with large reserve portfolios can report their asset items under securities available for sale rather than financing. This approach reduces liquidity risk and diminishes questions concerning amortization. The SEC highlighted that this application is temporary, and permanent standards will be issued after public feedback is collected.
The Broader Vision of SEC’s Cryptocurrency Regulation
The guidance advances in tandem with Project Crypto, an initiative introduced by Atkins last week. This project aims to establish modern rules that will transition the capital market to Blockchain, based on recommendations from the U.S. Presidential Working Group. While facilitating stablecoin transactions, the SEC plans to set clear boundaries within the cryptocurrency market. The primary objective is to create an innovation-friendly space for payment-focused stablecoins while regulating asset-like securities.Bernstein’s research team described the developments as an “unprecedented regulatory framework.” The analysis reveals that the U.S. is increasing its leadership opportunity in the global financial digital transformation with a clear, gradual, and technology-friendly approach. Consequently, banks and fintech companies will be able to establish institutional roadmaps for cryptocurrency integration more rapidly, while investors will gain access to new products within a regulated environment.
