US government watchdog urges FDIC coordinate on crypto oversight
The Government Accountability Office urged the FDIC to work with other federal agencies on risks from blockchain technology. It said regulators still lack an ongoing coordination mechanism, even as blockchain-based financial products and services have grown rapidly. The GAO has placed blockchain risk on its High Risk List because oversight of blockchain-linked financial products remains difficult and could threaten US markets. The GAO also pressed the FDIC to rotate bank case managers to improve supervisory independence. It said fixed assignments could compromise oversight outcomes and that rotation could reduce conflicts. The recommendations come after the 2023 failures of Silicon Valley Bank, Silvergate Bank, and Signature Bank, which had major crypto exposure and raised questions about how quickly supervisors addressed known concerns. Under the GENIUS Act, the FDIC is also the main regulator for stablecoin issuers owned by banks it supervises.
