The U.S. Securities and Exchange Commission (SEC) has issued new staff guidance that provides a pathway for certain fully-backed stablecoins to be classified as cash equivalents on corporate balance sheets. The guidance, released as part of the SEC's "Project Crypto" initiative, specifies that stablecoins meeting a strict set of criteria can be treated with the same accounting rules as traditional cash equivalents. To qualify, a stablecoin must: Be fully collateralized by high-quality, low-risk assets such as U.S. Treasury bills and cash. Offer holders guaranteed, 1:1 redemption rights for U.S. dollars. Be designed and marketed exclusively for payments and value storage, not for investment purposes. This significant regulatory clarity removes a major accounting barrier and is expected to accelerate the adoption of compliant stablecoins, such as Circle's $USDC and Paxos' $USDP, by institutional investors and corporate treasuries. This development could unlock substantial capital flows and further integrate digital assets into the traditional financial system.