TLDR
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GAO urges FDIC to close blockchain oversight gaps across agencies.
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FDIC faces renewed pressure over crypto-linked banking supervision.
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GAO says blockchain risks need stronger federal coordination now.
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Stablecoin rules expand FDIC’s role in digital asset oversight.
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2023 bank failures sharpen focus on FDIC crypto risk controls.
Washington’s bank oversight debate gained fresh pressure after the GAO pushed the FDIC to strengthen blockchain risk coordination. The watchdog said federal agencies still need a clear joint process for crypto-linked financial risks. The issue now sits at the center of wider stablecoin and market structure debates.
GAO Presses FDIC on Blockchain Risk Coordination
The Government Accountability Office released a June 8 letter to FDIC Chairman Travis Hill on Monday. It said the agency had not fully addressed earlier recommendations on blockchain oversight. The GAO first flagged the issue in a July 2023 report.
That report found no ongoing coordination mechanism among major federal financial regulators. It named the FDIC, Federal Reserve, OCC, SEC, CFTC, NCUA and CFPB. The watchdog wants a formal structure across agencies, not scattered actions.
The GAO said blockchain-based products have grown since its earlier review. Banks now explore custody, tokenized deposits and blockchain settlement tools. As a result, oversight gaps could grow without stronger coordination.
Stablecoin Rules Add Pressure on FDIC Oversight
The GENIUS Act placed the FDIC in a key role for certain stablecoin issuers. It covers issuers that operate as subsidiaries of banks supervised by the agency. Therefore, the FDIC now carries wider responsibility in digital asset oversight.
Lawmakers continue work on broader crypto market legislation. That bill could define how federal agencies divide authority over digital assets. GAO’s letter shows that coordination remains a major unresolved issue.
The watchdog said a joint mechanism would help agencies identify risks earlier. It would also support faster regulatory responses across overlapping markets. This matters because stablecoins can touch banking, securities, commodities, and consumer rules.
Bank Failures Shape the Watchdog’s Warning
The GAO also linked its concerns to the 2023 banking turmoil. Silicon Valley Bank, Silvergate Bank, and Signature Bank collapsed within days in March 2023. Their failures raised questions about supervision of banks with tech and crypto exposure.
The watchdog also urged the FDIC to rotate case managers assigned to banks. It said long assignments could affect independence and weaken supervision outcomes. Therefore, a rotation policy could reduce conflicts and strengthen examination standards.
The FDIC has made some changes since the GAO’s earlier findings. In July 2025, it joined the Federal Reserve and OCC on crypto risk management guidance. Still, the GAO said the wider recommendation remains open and only partly addressed.
FDIC Moves Alone While Wider Gaps Remain
The FDIC also changed its bank crypto policy in March 2025. It removed a prior requirement for banks to notify the agency before some crypto activities. Banks can now pursue allowed crypto work under normal risk management standards.
That shift gave banks more room to explore digital asset services. he GAO’s concern focuses on coordination across the full federal system. One regulator’s policy cannot solve risks that cross several legal boundaries.
The GAO cannot force the FDIC or other agencies to act. Yet its letters create a record that increases pressure on regulators. The watchdog wants the FDIC to help close blockchain risk loopholes before markets expand further.
