US Government Accountability Office Suggests Federal Deposit Insurance Corporation to Strengthen Cryptocurrency Regulatory Coordination

On June 8th, the U.S. Government Accountability Office (GAO) sent a letter to Travis Hill, Chairman of the Federal Deposit Insurance Corporation, recommending the establishment of a coordination mechanism to identify risks associated with blockchain financial products. U. S. GAO pointed out that the Federal Deposit Insurance Corporation is the main regulatory agency for stablecoin issuers under the GENIUS Act, and suggested rotating bank case managers to reduce threats to independence. The collapse of three cryptocurrency related banks in 2023 has raised questions about regulatory actions.