The U.S. Government Accountability Office (GAO) has urged the Federal Deposit Insurance Corporation (FDIC) to strengthen coordination with other regulators on blockchain-related risks as banks increase their involvement with digital assets.
The mandate was outlined in an official Priority Open Recommendations report sent to FDIC Acting Chairman Travis Hill. Originally dated June 8, 2026, the report was publicly released on June 15, exposing deep rifts in how Washington’s financial watchdogs handle the rapid integration of tokenized ledger systems.
According to the GAO, the absence of a structured, cross-agency tracking mechanism leaves the commercial banking sector exposed to structural blind spots as institutions increasingly scale their exposure to stablecoins, custody solutions, and digital asset settlements
The interagency coordination gaps
The GAO identified blockchain oversight as a key area requiring greater attention from the FDIC. In its letter, the agency said regulators still lack a formal, ongoing framework for jointly monitoring risks tied to digital assets. Establishing such a process would help regulators identify potential threats earlier and respond more effectively as crypto-related activity expands, the watchdog said.
The review also raised broader concerns about bank supervision. Citing lessons from the 2023 banking failures, the GAO said regulators did not always move quickly enough when institutions showed signs of liquidity stress or weaknesses in risk management.
The watchdog also recommended that the FDIC rotate certain case manager assignments more frequently. According to the agency, stronger rotation practices could improve supervisory independence and help reduce potential conflicts of interest during bank examinations.
“These two areas—strengthening bank supervision and addressing blockchain technology risks—also relate directly to issues highlighted in GAO’s High-Risk List,” the letter stated.
Crypto rules expand across Washington
The recommendation comes as the FDIC expands its involvement in digital asset oversight. Earlier this year, FDIC Chairman Travis Hill introduced a proposal linked to the GENIUS Act that would establish standards for stablecoin issuers operating through FDIC-supervised banks.
The proposed framework would set requirements for reserve assets, redemption practices, permitted activities and capital levels. It is intended to provide clearer guidelines for banks seeking to participate in the growing stablecoin market.
At the same time, lawmakers are considering broader crypto legislation. The Digital Asset Market Clarity Act recently advanced out of the Senate Banking Committee with bipartisan support in a 15-9 vote and now awaits consideration by the full Senate.
Banks are also increasing their involvement in blockchain-related services. Alexandra Steinberg Barrage, a former FDIC executive, recently told lawmakers that financial institutions are forming more partnerships with fintech companies to support services such as crypto custody, tokenized deposits and access to digital asset trading.
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