U.S. government oversight agency urges FDIC to coordinate cryptocurrency regulation

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 that blockchain technology has been placed on a high-risk list. The U.S. GAO recommended establishing relevant coordination mechanisms to help regulatory agencies such as the FDIC jointly identify risks and implement timely regulatory responses.Additionally, under the GENIUS Act passed last year, the FDIC is the primary regulator overseeing bank-affiliated stablecoin issuer subsidiaries. The U.S. GAO also recommended that the FDIC rotate case managers assigned to banks to reduce threats to independence. The failure of three crypto-related banks in 2023 has raised questions about whether regulators took sufficient action. (cointelegraph)