GAO Urges FDIC: Enhance Crypto Oversight Coordination

The U.S. Government Accountability Office (GAO) has urged the Federal Deposit Insurance Corporation (FDIC) to enhance its coordination with other federal agencies regarding regulatory oversight of cryptocurrency markets. This call, conveyed in a letter to FDIC Chairman Travis Hill on June 8, 2026, reiterates a recommendation first made in July 2023. The GAO emphasized that a formal interagency coordination mechanism for blockchain-related risks has yet to be fully implemented. The watchdog highlights the need for continuous collaboration to maintain financial stability and effectively manage the risks posed by the evolving digital asset landscape.

The GAO's initial recommendation on this matter originated from its July 2023 report, GAO-23-105346, which found that federal regulators lacked an "ongoing coordination mechanism for addressing blockchain risks." The agencies identified in that report included the FDIC, the Federal Reserve (Fed), the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the National Credit Union Administration (NCUA), and the Consumer Financial Protection Bureau (CFPB). According to the GAO's latest communication, this critical recommendation remains "open and partially addressed."

While some progress has been made, the level of coordination sought by the GAO has not yet been fully achieved. For instance, in July 2025, the FDIC, Federal Reserve, and OCC issued a joint statement on crypto-asset risk management. However, this only encompassed three out of the seven relevant agencies. Separately, the FDIC has taken its own actions; on March 28, 2025, it issued Directive FIL-7-2025, which rescinded previous requirements for banks to notify the FDIC before engaging in crypto-asset activities. This new approach allows banks to participate in permissible crypto-asset activities without prior approval, provided they adhere to appropriate risk management guidelines.

Blockchain-related financial products and services have expanded significantly since the GAO's initial findings in 2023. Banks are increasingly exploring areas such as tokenized deposits, digital asset custody services, and blockchain-based settlement systems. However, the lack of coordination among regulators creates compliance uncertainty for banks venturing into crypto custody, stablecoin services, or blockchain payments. This situation could delay decision-making processes and potentially impact banks' competitive edge in the evolving digital finance landscape.

The GAO's renewed call comes at a time of heightened scrutiny over regulatory actions, following the collapses of significant banks tied to the crypto industry in 2023, including Silicon Valley Bank, Silvergate Bank, and Signature Bank. These events raised questions about whether regulators acted swiftly enough when institutions displayed weaknesses in liquidity and risk management. Furthermore, the expansion of the FDIC's role as the primary regulator for stablecoin-issuing subsidiaries owned by banks, under the GENIUS Act passed last year, further underscores the urgent need for enhanced coordination.

Although the GAO's recommendations are not legally binding, their adoption by the FDIC could provide clearer interagency guidance for regulated institutions. This would likely improve the regulatory environment for crypto-related services and facilitate access for digital asset firms to traditional financial infrastructure. Additionally, the GAO recommended that the FDIC implement a rotation of case managers assigned to banks to enhance supervisory independence and mitigate the risks of inconsistent decision-making. Such measures could foster a more transparent and consistent regulatory framework in the market, thereby bolstering investor confidence.