U.S. government regulators urge the Federal Deposit Insurance Corporation to coordinate cryptocurrency regulation

On June 8, the U.S. Government Accountability Office (U.S. GAO) sent a letter to Federal Deposit Insurance Corporation Chairman Travis Hill. The letter pointed out that blockchain-related financial products and services have significantly increased, and blockchain technology has been placed on the high-risk list. U.S. GAO recommended establishing a relevant coordination mechanism to assist regulatory agencies, such as the Federal Deposit Insurance Corporation, in jointly identifying risks and timely implementing regulatory responses.

In addition, according to the GENIUS Act passed last year, the Federal Deposit Insurance Corporation is the primary regulatory agency overseeing stablecoin issuers under banks. U.S. GAO also suggested that the Federal Deposit Insurance Corporation rotate case managers assigned to banks to reduce threats to independence. The collapse of three banks related to the cryptocurrency industry in 2023 raised questions about whether regulatory agencies took sufficient action.