The U.S. Government Accountability Office (GAO) has formally urged the Federal Deposit Insurance Corporation (FDIC) to establish a standing coordination mechanism with other federal regulators to better monitor and respond to blockchain-related financial risks. In a June 8 letter made public on June 15, the watchdog highlighted that regulators still lack an ongoing process for joint oversight despite the rapid growth of blockchain-based products and services.
The GAO’s push comes as the FDIC’s responsibilities expand under the GENIUS Act, which tasks the agency with overseeing stablecoin issuers operating through the banking system. In April, the FDIC proposed rules covering reserves, redemption, capital, risk management, and custody standards for such issuers. Under that framework, reserve deposits backing stablecoins could qualify for deposit insurance if held in insured banks, though stablecoin holders themselves would not receive federal protection.
The letter also addressed bank supervision lapses exposed by the 2023 failures of Silicon Valley Bank, Signature Bank, and Silvergate Bank. The GAO reiterated a recommendation for periodic rotation of case managers assigned to banks, arguing that a lack of rotation could compromise independence and weaken supervision outcomes.
Meanwhile, broader crypto rulemaking continues in Washington. The Senate Banking Committee advanced the CLARITY Act in May, which would split digital asset oversight between the SEC and CFTC while creating a separate framework for payment stablecoins. The FDIC itself has shifted its stance, now allowing supervised banks to engage in permitted crypto activities without prior approval if they manage the associated risks.
The GAO did not seek a ban on blockchain products but instead emphasized that a standing interagency process would help identify risks and enable faster responses as stablecoins, bank charters, and market structure bills move forward.
