The US Government Accountability Office (GAO) has urged the Federal Deposit Insurance Corporation (FDIC) to coordinate more closely with other federal regulators on blockchain risks.
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- The GAO said regulators still lack a permanent process for coordinated oversight of blockchain financial risks.
- The Federal Deposit Insurance Corporation (FDIC) faces new pressures as GENIUS Act rules expand its role over stablecoin issuers nationwide.
- The watchdog also urged a rotation of case managers after bank failures in 2023 raised supervision questions again.
The supervisory authority issued a decision on June 8 letter To FDIC Chairman Travis Hill to the public on June 15.
Meanwhile, the Government Accountability Office said that blockchain-related financial products and services have grown in recent years. He said regulators “lacked an ongoing coordination mechanism” for blockchain risks when they reviewed the issue in 2023. Such a process would help agencies identify risks and respond faster, the office said.
The FDIC’s role is growing under the stablecoin law
This recommendation arrives as the FDIC’s crypto role grows under the GENIUS Act. Such as crypto.news I mentioned In April, the Federal Deposit Insurance Corporation (FDIC) proposed rules for stablecoin issuers operating through the banking system. The proposal covers reserves, recoveries, capital, risk management and custody standards.
Under this framework, reserve deposits backing stablecoins may be eligible for deposit insurance if they are located within insured banks. Stablecoin holders will not receive federal deposit protection. This difference keeps the FDIC at the center of the debate over how to apply bank rules to token payment products.
In addition, GAO also urged the Federal Deposit Insurance Corporation (FDIC) to strengthen banking supervision. She said the bank failures in 2023 raised questions about whether regulators acted quickly enough when institutions showed poor liquidity and risk management. Silicon Valley Bank, Signature Bank, and Silvergate Bank have all become part of the broader discussion about banking exposure to crypto and technology clients.
The watchdog also reiterated a recommendation that the FDIC rotate some case managers assigned to banks. She said the agency does not require periodic rotation, which may weaken independence and affect supervision results. GAO said rotation rules can support evidence-based escalation decisions.
Encryption rules continue to be more widely established
The GAO letter comes as Congress and federal agencies continue to work on cryptocurrency rules. As previously reported, Senate Banking Committee advanced The Clarity Act passed in a 15-9 vote in May. The bill would split digital assets across SEC and CFTC oversight and create a separate framework for stablecoin payments.
The Federal Deposit Insurance Corporation (FDIC) has also changed its approach to cryptocurrency banking. In 2025 the agency He said Banks supervised by the Federal Deposit Insurance Corporation (FDIC) can engage in permitted businesses related to cryptocurrencies without prior approval from the agency, if they manage the risks. Travis Hill said the agency is “turning the page” on the past approach.
Lawmakers have questioned stablecoin issuers, reviews of banking charters, customer identification rules, and whether cryptocurrency companies should face bank-like guarantees when their products resemble deposits.
For the FDIC, the demand now lies alongside stablecoin rulemaking and bank supervision duties. The GAO has not called for a ban on blockchain products. It called for a permanent process that allows agencies to work together before risks spread across markets.
The letter positions cryptocurrency oversight as a coordination issue at a time when stablecoins, banking charters and market structure bills move through Washington. The report lists blockchain risk monitoring and banking supervision as two areas that need timely attention from the FDIC.
