GAO Warns FDIC on Crypto Regulatory Oversight Coordination

The U.S. Government Accountability Office (GAO) has urged the Federal Deposit Insurance Corporation (FDIC) to improve coordination on crypto regulatory oversight.

According to a June 8 letter to FDIC Chairman Travis Hill, the GAO expressed concern that regulators have struggled to keep pace with the rapid growth of blockchain-based financial products.

The GAO highlighted the lack of an ongoing coordination mechanism for addressing blockchain risks, even as blockchain-related financial services expanded significantly in recent years.

The regulator's push arrives as federal oversight of crypto-linked banking continues to take shape. Under the GENIUS Act passed last year, the FDIC is the main regulator for stablecoin issuers that operate as subsidiaries of banks it supervises.