Banking oversight related to crypto assets is back in the spotlight in the United States. The Government Accountability Office (GAO), an independent watchdog, has formally called on the Federal Deposit Insurance Corporation (FDIC) to enhance coordination with other regulatory agencies when monitoring risks stemming from blockchain technology. According to the GAO, a unified and continuously functioning framework to address financial threats linked to crypto assets still has not been fully established.
GAO issues direct warning to FDIC
The GAO sent a letter dated June 8 to FDIC Chairman Travis Hill, expressing concerns that the agency had not sufficiently implemented previous recommendations regarding blockchain oversight. These remarks were built on findings from a July 2023 GAO report.
In that earlier assessment, the GAO pointed out a lack of ongoing and systematic collaboration among the main U.S. financial regulators, including the Federal Reserve, OCC, SEC, CFTC, NCUA, and CFPB. Instead of fragmented efforts, the agency called for durable, interagency protocols to govern digital assets.
As blockchain-based financial products become more widespread, with functions such as custody services, tokenized deposit platforms, and distributed ledger settlements increasingly prominent, the GAO warned that regulatory loopholes could widen if joint oversight mechanisms are not strengthened.
The GAO emphasized that, especially over the last two years, banks and financial institutions have increasingly entered the digital asset sector. This expansion, the watchdog argued, presents risks that exceed the jurisdiction of any single regulator, making closer coordination essential.
Stablecoin oversight expands FDIC mandate
Another key issue highlighted in the report involved new powers granted to the FDIC under the GENIUS Act. The legislation has tasked the agency with important oversight responsibilities over certain stablecoin issuers that operate as subsidiaries of FDIC-supervised banks, significantly broadening the FDIC’s responsibilities in monitoring digital assets.
Glossary: The FDIC is a U.S. federal agency providing bank deposit insurance and supervising selected banks. A stablecoin is a digital asset designed to maintain a fixed value, often pegged to the U.S. dollar.
Meanwhile, Congress continues to work towards establishing a more comprehensive framework for the crypto asset market. Potential new regulations are expected to more clearly define federal agencies’ jurisdictions in the digital asset space. The GAO maintains that a lack of interagency coordination remains one of the sector’s most pressing deficiencies.
Echoes of 2023 bank failures
The GAO also linked its warnings to the banking turmoil of 2023. Financial institutions with ties to the tech and crypto sectors—including Silicon Valley Bank, Silvergate Bank, and Signature Bank—collapsed within a matter of days in March 2023, raising fresh questions over how such entities are supervised.
The oversight office further suggested introducing rotation programs for case managers involved in the FDIC’s supervision processes, noting that extended tenure in the same role could erode neutrality and reduce audit quality.
Progress deemed insufficient
Following previous GAO recommendations, the FDIC did implement a number of measures. For instance, in July 2025, it joined the Federal Reserve and OCC in preparing crypto risk management guidance. Yet the GAO continues to view agency responses as incomplete.
Additionally, in March 2025, the FDIC changed its approach regarding crypto activities, eliminating the requirement for banks to notify regulators before certain digital asset transactions. However, the GAO argues that actions by individual agencies still fall short of resolving systemic gaps that cut across multiple jurisdictions.
