Companies will gain tools to better assess whether certain cryptocurrencies like stablecoins can be treated similarly to cash in their financial reports under a new accounting proposal.

The Financial Accounting Standards Board published a draft plan Tuesday that would provide illustrative examples in US guidance clarifying how the current definition of “cash equivalents”— reserved for highly liquid, short-term investments — applies to certain digital assets. Investors look to the cash and cash equivalents line item on the balance sheet to analyze businesses’ most liquid assets.

The proposal also aims to give investors a clearer window into the types of cash …