GAO Urges FDIC to Coordinate on Blockchain and Crypto Risks

The U.S. Government Accountability Office has urged the Federal Deposit Insurance Corporation to coordinate with other federal agencies to address risks from blockchain technology. In a June 8 letter to FDIC Chairman Travis Hill made public Monday, the GAO noted it first flagged priority recommendations with the regulator in May last year, including concerns about blockchain risks.

The GAO placed blockchain technology on its High Risk List, saying regulators have struggled to oversee blockchain-based financial products and the risks they could pose to U.S. markets. Under the GENIUS Act passed last year, the FDIC is the main regulator for stablecoin issuers that are subsidiaries of banks it supervises, while Senate lawmakers are considering a bill to outline how federal agencies would regulate the wider crypto market.

In 2023 the GAO found regulators lacked an ongoing coordination mechanism for addressing blockchain risks even as blockchain-related financial products and services grew substantially.

United States

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