Key facts
- The GAO recommended the FDIC establish an ongoing coordination mechanism with other federal agencies to address blockchain risks.
- Regulators currently lack a coordinated approach to overseeing blockchain-based financial products, according to the GAO.
- The FDIC is the primary regulator for stablecoin issuers that are subsidiaries of banks it supervises, under the GENIUS Act.
- The GAO found that supervisors were not required to rotate to different banks, potentially compromising their independence.
- The collapses of crypto-linked banks in 2023 raised questions about the adequacy of supervisory actions, the GAO stated.
The US Government Accountability Office (GAO) has urged the Federal Deposit Insurance Corporation (FDIC) to develop an ongoing coordination mechanism with other federal agencies to address the risks associated with blockchain technology and its related financial products. In a letter made public on Monday, dated June 8, the GAO highlighted that regulators have struggled to oversee these products, which have grown substantially.