US government watchdog urges FDIC to coordinate on crypto oversight
The US Government Accountability Office urged the FDIC to work with other federal regulators on blockchain-related risks, saying current oversight lacks an ongoing coordination mechanism even as blockchain-based financial products have grown. The GAO has placed blockchain technology on its High Risk List because regulators have struggled to oversee these products and their market risks. It said a coordinated approach would help agencies identify risks and respond faster. The GAO also pressed the FDIC to rotate bank case managers to improve supervisory independence. It said mandatory rotation could reduce the risk that supervisors become too close to the banks they oversee. The warnings come after several crypto- and tech-linked banks failed in 2023, raising questions about whether regulators acted quickly enough on supervisory concerns.
