FDIC Urged to Coordinate Blockchain Oversight Amid Growing Risks

The US Government Accountability Office (GAO) has called on the Federal Deposit Insurance Corporation (FDIC) to coordinate its oversight of blockchain technology with other federal agencies.

In a June 8 letter to FDIC Chairman Travis Hill, the GAO highlighted the growing risks associated with blockchain-based financial products and services.

The GAO first flagged priority recommendations with the regulator in May last year, including addressing blockchain technology risks. The watchdog deemed that regulators have struggled to oversee these products and the potential risks they pose to US markets.

Under the GENIUS Act passed last year, the FDIC is the main regulator for stablecoin issuers that are subsidiaries of banks it supervises.