U.S. government watchdog urges FDIC to coordinate cryptocurrency regulation

Odaily Planet Daily News The U.S. Government Accountability Office (U.S. GAO) sent a letter to FDIC Chairman Travis Hill on June 8. The letter noted a significant increase in blockchain-related financial products and services, and blockchain technology has been placed on a high-risk list. The U.S. GAO recommended establishing relevant coordination mechanisms to help regulators such as the FDIC jointly identify risks and implement timely regulatory responses.

Furthermore, under the GENIUS Act passed last year, the FDIC is the primary regulator overseeing banks' stablecoin-issuing subsidiaries. The U.S. GAO also recommended that the FDIC rotate case managers assigned to banks to reduce threats to independence. The collapse of three crypto-related banks in 2023 has raised questions about whether regulators took sufficient action. (cointelegraph)