US Regulators Urge FDIC to Tighten Crypto Oversight Amid Blockchain Risks

US regulators are urging the Federal Deposit Insurance Corporation (FDIC) to improve coordination on crypto oversight, as blockchain technology continues to pose risks to US markets.

The Government Accountability Office (GAO) made a June 8 letter to FDIC Chairman Travis Hill public on Monday, citing concerns over the regulator's ability to oversee blockchain-based financial products.

In its letter, the GAO noted that it had previously flagged priority recommendations with the FDIC in May last year, including addressing risks from blockchain technology. The agency deems regulators have struggled to keep up with the growth of blockchain-related financial products and services.

The GAO also urged the FDIC to require supervisors to rotate between banks to strengthen supervision of the sector, citing a failure to do so as a potential threat to independence.