Stablecoin compliance could decide institutional winners: Aquanow CEO

cryptonews

Yesterday

Stablecoin compliance could determine which issuers win institutional adoption as new US accounting and regulatory rules raise standards for redemption, reserves and risk controls, according to ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://nz.tigrwd.com/news/2662774308"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2662774308\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2662774308?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-08-26 23:59","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2662774308","market":"fut","top_or_hot":-1,"title":"Stablecoin compliance could decide institutional winners: Aquanow CEO","media":"cryptonews","content":"<div>\n<p>Stablecoin compliance could determine which issuers win institutional adoption as new US accounting and regulatory rules raise standards for redemption, reserves and risk controls, according to ...</p>\n\n<a href=\"https://crypto.news/stablecoin-compliance-decide-institutional-winners/\">Source Link</a>\n\n</div>\n","source":"crypto_news_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stablecoin compliance could decide institutional winners: Aquanow CEO</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStablecoin compliance could decide institutional winners: Aquanow CEO\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-26 23:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://crypto.news/stablecoin-compliance-decide-institutional-winners/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Stablecoin compliance could determine which issuers win institutional adoption as new US accounting and regulatory rules raise standards for redemption, reserves and risk controls, according to ...</p>\n\n<a href=\"https://crypto.news/stablecoin-compliance-decide-institutional-winners/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://crypto.news/stablecoin-compliance-decide-institutional-winners/","article_id":"2662774308","we_media_id":null,"thumbnails":[],"rights":{"source":"crypto_news_highlight","url":"https://crypto.news/stablecoin-compliance-decide-institutional-winners/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2662774308","pubTimestamp":1787759996,"columns":[],"sourceInfo":{"source_id":"crypto_news_highlight","name":"Crypto News"},"weMediaInfo":null,"summary":"Stablecoin compliance could determine which issuers win institutional adoption as new US accounting and regulatory rules raise standards for redemption, reserves and risk controls, according to Aquanow CEO Phil Sham.FASB has proposed clarifying when certain digital assets may qualify as cash equivalents.Direct redemption rights could make the same stablecoin receive different accounting treatment across holding arrangements.Larger issuers may gain liquidity, although smaller stablecoins can compete through specialized uses.The Financial Accounting Standards Board issued a proposal on Aug. 18 that would clarify how the existing definition of cash equivalents applies to certain digital assets, including some stablecoins.The proposal does not classify every stablecoin as cash. Instead, it focuses on qualifying assets with characteristics such as price stability, liquid reserves, and contractual rights allowing holders to redeem directly with the issuer for cash on demand.Institutions woul","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"稳定币合规性可能决定机构赢家：Aquanow 首席执行官","themeId":null,"isJumpTheme":false,"ttsUrl":"https://static.tigerbbs.com/b564f91fc4b028ce60ec3aac6466ab43","symbols_score_info":{"BKCH":0.6,"CCUP":0.6,"ICRC":0.6,"CIR":0.6,"CRCD":0.6,"CRCO":0.6,"BLCK":0.6,"IBLC":0.6,"CRCG":0.6,"CRCA":0.6,"CRCL":1.72},"content_text":"Stablecoin compliance could determine which issuers win institutional adoption as new US accounting and regulatory rules raise standards for redemption, reserves and risk controls, according to Aquanow CEO Phil Sham.\n\n\nSummary\n\n\n\nFASB has proposed clarifying when certain digital assets may qualify as cash equivalents.\nDirect redemption rights could make the same stablecoin receive different accounting treatment across holding arrangements.\nGENIUS Act rules will restrict the US market to licensed issuers under a phased timeline.\nLarger issuers may gain liquidity, although smaller stablecoins can compete through specialized uses.\n\n\n\nThe Financial Accounting Standards Board issued a proposal on Aug. 18 that would clarify how the existing definition of cash equivalents applies to certain digital assets, including some stablecoins.\nThe proposal does not classify every stablecoin as cash. Instead, it focuses on qualifying assets with characteristics such as price stability, liquid reserves, and contractual rights allowing holders to redeem directly with the issuer for cash on demand.\nFASB’s proposal arrived one day after the US Treasury requested public comments on rules for implementing Section 3 of the GENIUS Act. Together, the two measures could reduce accounting uncertainty while raising the compliance threshold for issuers seeking institutional adoption in the US.\nPhil Sham, CEO and co-founder of digital asset infrastructure provider Aquanow, told crypto.news that accounting recognition could remove a meaningful barrier for financial institutions. However, he said it would not automatically make stablecoins equivalent to bank deposits or other traditional cash holdings across every part of an institution.\nStablecoin accounting could remove treasury friction\nClassifying qualifying stablecoins as cash equivalents could make them easier for companies to use in treasury management, payments, and settlement. The change may also affect how firms present digital assets on their balance sheets and assess their available liquidity.\nSham said the proposal could make it easier to add eligible stablecoins to existing financial workflows.\n\n“If adopted, the proposal could remove meaningful accounting friction and make qualifying stablecoins easier to integrate into treasury and settlement workflows.”\n\nAccounting treatment would only address one part of the institutional approval process. Banks, investment firms, and corporations would still need to consider regulatory capital rules, internal risk limits, collateral standards, and contractual obligations.\nMany bond agreements and credit facilities have their own definitions of cash and cash equivalents. Even if a stablecoin meets the FASB standard, a borrower may need lender approval before using the asset to meet a liquidity covenant or minimum-cash requirement.\nInstitutions would also need to evaluate custody, issuer exposure, secondary-market liquidity, and their ability to redeem during periods of market stress.\n“Firms would also require confidence in redemption, custody, issuer exposure, operational controls and liquidity under stress,” Sham said. “It could accelerate adoption, but not replace traditional cash holdings overnight.”\nThe distinction means a favorable accounting standard could support stablecoin use without resolving every legal, credit, and operational concern attached to the asset.\nRedemption rights may matter more than the token\nFASB’s focus on direct, on-demand redemption could also produce different accounting outcomes for institutions holding the same stablecoin.\nStablecoins are generally fungible on-chain, meaning one unit of a token is designed to be interchangeable with another. However, the legal rights attached to those units may depend on whether the holder bought them directly from the issuer, holds them through a custodian, or has exposure through an exchange account.\nAn institution holding a stablecoin through an exchange may have a contractual claim against the platform rather than the issuer. According to Sham, that additional counterparty exposure could prevent the asset from meeting the proposed cash-equivalent criteria.\n\n“The same stablecoin could be fungible on-chain but treated differently depending on the holder’s contractual rights.”\n\nA bankruptcy-remote trust or custodial arrangement could produce another outcome if it legally passes direct redemption rights to the beneficial owner. Sham said the result would depend on the final accounting standard, the institution’s documentation and the terms of the arrangement.\nThe proposal could therefore influence how institutional stablecoin products are structured. Exchanges and custodians may face pressure to show that customers retain enforceable redemption rights rather than only a claim against an intermediary.\n“Accounting eligibility may therefore depend as much on how the stablecoin is held as on the asset itself,” Sham said.\nGENIUS Act rules raise the compliance threshold\nThe GENIUS Act adds a separate regulatory test for issuers seeking access to US customers.\nUnder Treasury’s proposed implementation framework, a person generally would not be permitted to issue a payment stablecoin in the US after Jan. 18, 2027, without an appropriate federal or state license.\nThe law also places conditions on foreign-issued stablecoins offered in the country. Foreign issuers would need the technical ability to follow lawful US orders and comply with applicable arrangements between the US and their home jurisdictions.\nA further restriction is due to begin on July 18, 2028. Digital asset service providers generally would no longer be permitted to offer payment stablecoins to US customers unless a licensed issuer issued them.\nFor institutions choosing among eligible stablecoins, Sham said formal authorization will be only the starting point. Firms will examine the issuer’s redemption terms, the quality and concentration of its reserves, asset segregation and independent reporting.\nThey are also likely to study what happens if the issuer or one of its reserve banks fails.\n\n“Institutions ask three practical questions: who owes us the dollar, where is it held, and how quickly can we recover it under stress?”\n\nSham said a 1:1 reserve claim would not be enough by itself. Institutional users would want evidence that they can consistently redeem at par, including when liquidity conditions deteriorate.\nGovernance, cybersecurity, business continuity, anti-money laundering procedures and sanctions controls could also affect an issuer’s ability to win institutional business.\nCompliance could concentrate stablecoin liquidity\nThe combined accounting and licensing requirements could direct more activity toward a limited group of issuers with established banking relationships, distribution channels, and compliance teams.\nLarge issuers can spread regulatory and operational costs across a wider user base. They also benefit from existing exchange integrations and deeper liquidity, making their stablecoins easier to use for trading, settlement and collateral.\nSham said those advantages could make it harder for newer issuers to attract enough liquidity to compete.\n\n“Liquidity may concentrate among established issuers because compliance costs, distribution and network effects favour scale. That will make it harder, but not impossible, for newer players to compete.”\n\nSmaller issuers could still build a market by targeting regional payment needs, industry-specific settlements, or markets underserved by the largest dollar-backed tokens. Lower costs alone may not be enough if users cannot reliably redeem the token or if intermediaries cannot offer it in the US.\nA smaller issuer would need sound regulatory foundations, clear redemption terms and an ecosystem prepared to support the asset, according to Sham.\n“Compliance earns the right to compete; utility and ecosystem readiness drive usage,” he said.\nFASB’s proposal and the GENIUS Act framework remain subject to their respective rulemaking processes. Treasury said comments on its proposed rule should be submitted within 60 days of publication in the Federal Register.\nIf the rules take effect largely as proposed, stablecoin competition could shift from a race based mainly on supply, yield and exchange availability toward one shaped by legal claims, reserve access and the ability to return dollars during a crisis.\n\n\n\n\n\n                Read more:\n            \n\n                Pump.fun adds HyperEVM token trading with USDC","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}