Why is the Government Accountability Office urging the FDIC to coordinate on blockchain risks?

The Government Accountability Office said the Federal Deposit Insurance Corporation lacks a formal coordination mechanism for addressing blockchain-related risks with other regulators. The watchdog believes stronger cooperation would help regulators identify and respond to emerging risks more quickly.

What does the Government Accountability Office say about blockchain oversight?

The Government Accountability Office said regulators have struggled to oversee blockchain-based financial products and services. The agency identified blockchain technology as an area requiring greater regulatory attention due to its growing role in financial markets.

How is the Federal Deposit Insurance Corporation involved in stablecoin regulation?

The Federal Deposit Insurance Corporation became the primary regulator for certain stablecoin issuers under the GENIUS Act. The agency is responsible for overseeing stablecoin issuers that operate as subsidiaries of banks under its supervision.

What are the Government Accountability Office's recommendations for the Federal Deposit Insurance Corporation?

The Government Accountability Office recommended that the Federal Deposit Insurance Corporation establish a coordination framework with other regulators and rotate bank supervisors more frequently. The watchdog said these measures could improve oversight and reduce risks to supervisory independence.

What do the failures of Silvergate Bank, Signature Bank and Silicon Valley Bank mean for crypto oversight?

The collapses of Silvergate Bank, Signature Bank and Silicon Valley Bank in 2023 raised questions about whether regulators acted quickly enough to address supervisory concerns. The Government Accountability Office cited these failures as evidence that stronger oversight and coordination may be needed.

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GAO urges FDIC to coordinate crypto oversight

Written by Mahathir BayenaPublished Jun 16, 2026, 5:25 AM

The US Government Accountability Office urged the FDIC to improve coordination with other regulators on blockchain and crypto-related risks.
The watchdog said regulators still lack a formal mechanism to address risks from blockchain-based financial products.
The recommendation comes as lawmakers consider broader crypto market legislation and stablecoin oversight expands.

The US Government Accountability Office (GAO) has called on the Federal Deposit Insurance Corporation (FDIC) to strengthen coordination with other federal agencies to address risks associated with blockchain technology and crypto-related financial products.

The recommendation follows a 2023 GAO review that found regulators lacked an ongoing mechanism to coordinate responses to blockchain risks, despite significant growth in blockchain-based financial services since then.

“Establishing such a mechanism, as we recommended, would help FDIC and other regulators collectively identify risks and develop and implement a regulatory response in a timely manner,” the GAO said.

The watchdog also urged the FDIC to rotate bank supervisors more regularly, arguing that prolonged assignments could affect independence and oversight effectiveness within the banking sector.

The recommendations come as the FDIC assumes greater responsibility for supervising certain stablecoin issuers under the GENIUS Act, while lawmakers continue considering legislation to establish a broader regulatory framework for digital assets, and following the announcement the FDIC's share price was unchanged at US$0.00.

The GAO said concerns over banking supervision intensified after the collapses of Silicon Valley Bank, Silvergate Bank and Signature Bank in March 2023, which were all exposed to varying degrees of crypto industry activity.

According to the watchdog, those failures raised questions about whether regulators acted quickly enough to ensure banks addressed supervisory concerns, highlighting the need for stronger oversight and interagency coordination as digital asset markets continue to evolve.