On August 20, Circle Internet Corp. rose 5.56% in regular trading, trading at $80.04/share, with turnover of $302 million. The rally was driven by a proposal from the U.S. Financial Accounting Standards Board (FASB) to classify qualifying stablecoins as cash equivalents in corporate financial statements.
According to the proposal released on August 19, eligible digital assets must meet key criteria: redeemable on demand for cash, holders can redeem a fixed amount directly from the issuer, and reserve assets must be segregated and backed at least 1:1 by short-term, highly liquid assets. FASB clarified how existing cash equivalent definitions apply to stablecoins without modifying the definitions themselves. The comment period remains open until November 19.
Circle, as the issuer of USDC and EURC, stands to benefit directly from this accounting standards change. The policy tailwind arrives alongside broader momentum — Bitwise previously projected the stablecoin market could expand from approximately $300 billion to $3-5 trillion, with Circle holding a first-mover advantage. Additionally, ARK Invest recently purchased over 313,000 shares of Circle valued at approximately $20.9 million, reflecting institutional confidence in the company's growth trajectory.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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