AICPA Introduces 2025 Criteria for Stablecoin Reporting

Stablecoin attestation reports are formal documents issued by independent third-party certified public accountant (CPA) firms that verify whether a stablecoin issuer holds sufficient reserves to back the coins in circulation. These reports are crucial for building trust in the stablecoin ecosystem, as they provide evidence that each token is backed by real-world assets such as cash and US Treasurys. However, it is important to note that attestations are point-in-time checks and not deep financial audits, so users should still perform broader due diligence.

Not all tokens are redeemable. Time-locked, test, or frozen tokens are excluded from reserve calculations to reflect only actively circulating coins. This ensures that the attestation report accurately represents the reserves backing user-accessible stablecoins. For example, Circle's USDC attestation reports are conducted by Deloitte, a leading global audit and advisory firm, and follow professional standards set by bodies like the AICPA (American Institute of Certified Public Accountants).

In response to growing concerns over inconsistent stablecoin disclosures, the AICPA introduced the 2025 Criteria for Stablecoin Reporting, a standardized framework for fiat-pegged, asset-backed tokens. These criteria define how stablecoin issuers should present and disclose three key areas: redeemable tokens outstanding, the availability and composition of redemption assets, and the comparison between the two. By aligning attestation reports with this framework, accounting firms ensure that evaluations are conducted using suitable, objective, and measurable criteria, giving investors, regulators, and DeFi users a more consistent and reliable basis for evaluating stablecoin solvency and trustworthiness.

Reading a stablecoin attestation report involves checking the report date, comparing circulating supply vs. reserves, looking at what backs the reserves, reviewing custodian and asset details, understanding the methodology, identifying excluded tokens, and checking who performed the attestation. For instance, Circle's February 2025 USDC attestation report, independently examined by Deloitte, confirmed that the fair value of Circle's reserves was equal to or greater than the amount of USDC in circulation as of both Feb. 4 and Feb. 28, 2025. The report showed that the amount of USDC in circulation stood at $54.95 billion on Feb. 4 and $56.28 billion on Feb. 28, with the fair value of reserves held to back USDC exceeding these figures, totaling $55.01 billion and $56.35 billion on the respective dates.

Stablecoin attestation reports serve as a form of proof of reserves, providing independent confirmation that a stablecoin issuer holds enough assets to back the tokens in circulation. The verification process typically involves reviewing bank statements and financial records, confirming cash balances held by custodians, cross-checking reported reserves with third-party documentation, and comparing the supply of stablecoins onchain with the reported reserve amount. These procedures are carried out by independent accounting firms and are designed to ensure that the reserves are not only sufficient but also liquid and accessible.

If an attestation report reveals that a stablecoin issuer does not hold sufficient reserves, the consequences can be severe. The issuer may face regulatory scrutiny, market sell-offs, and price instability. This highlights the need for regular, transparent crypto reserve reports. For example, Tether has faced ongoing criticism for the lack of clarity surrounding its reserves, fueling demands for greater disclosure. Lack of transparency can also invite speculation and misinformation, which can cause unnecessary panic in the markets. As a result, proactive disclosure is not just a best practice; it’s a business imperative for stablecoin issuers.

While attestation reports are crucial, they are not a cure-all. They are point-in-time snapshots and do not provide forward-looking guarantees or cover risks like hacking, mismanagement, or liquidity issues. Users must understand these limitations and avoid assuming that attestation equals absolute safety. This is why combining attestation reports with other forms of due diligence, such as reading legal disclaimers, following regulatory updates, and tracking company behavior, is key for responsible crypto participation.

Reading a stablecoin attestation report is more than scanning numbers; it's a key step in assessing the trustworthiness of a digital asset. By understanding how to read attestation reports, crypto users can make informed decisions, avoid unnecessary risks, and support projects that prioritize stablecoin compliance and transparency. With clearer frameworks from institutions like the AICPA and growing public pressure for stablecoin disclosure practices, the ecosystem is moving toward greater accountability. As regulators sharpen their focus and investors demand more visibility, learning to navigate crypto attestation reports will become an essential skill for all participants in the crypto economy.