The U.S. Government Accountability Office (GAO) is recommending that the FDIC work more closely with other regulatory agencies to address the risks banks face as they get more involved with things like cryptocurrency and other digital assets.
An official report detailing specific recommendations was sent to Acting FDIC Chairman Travis Hill. Originally created on June 8, 2026, the report became public on June 15th and revealed significant disagreements among financial regulators in Washington regarding the fast-paced adoption of blockchain technology.
The Government Accountability Office (GAO) has found that without a coordinated way to monitor activity across different agencies, the commercial banking system is vulnerable. This is especially true as banks increase their involvement with stablecoins, digital asset storage, and ways to settle digital asset transactions.
Priority Open Recommendations: Federal Deposit Insurance Corporation
— U.S. GAO (@USGAO) June 15, 2026
The interagency coordination gaps
A recent government report highlighted the need for the FDIC to better oversee blockchain technology. The report found that regulators currently lack a consistent, ongoing system for tracking the risks associated with digital assets like cryptocurrency. Developing this kind of system would allow them to spot and address potential problems sooner, especially as more people and businesses use crypto.
The report also highlighted problems with how banks are overseen. Referencing the bank failures of 2023, the GAO stated that regulators didn’t consistently act fast enough when banks began to show financial difficulties or had weak risk controls.
The agency’s inspector general suggested the FDIC change how it assigns case managers, rotating them more often. This would help ensure examiners remain unbiased and avoid potential conflicts of interest when reviewing banks.
The letter also noted that improving bank oversight and managing the risks of blockchain technology are both key concerns already identified on the Government Accountability Office’s (GAO) list of high-risk areas.
Crypto rules expand across Washington
This suggestion follows the FDIC’s increased focus on watching over digital assets. Earlier in the year, FDIC Chair Travis Hill proposed rules connected to the GENIUS Act – these rules would set requirements for companies issuing stablecoins and working with banks that the FDIC regulates.
This new plan outlines rules for things like how much money banks need to hold in reserves, how quickly people can redeem stablecoins, what banks are allowed to do with them, and how much capital they must have. It’s designed to give banks clearer direction if they want to offer stablecoin services, which are becoming increasingly popular.
Meanwhile, Congress is also working on new laws for cryptocurrencies. A bill called the Digital Asset Market Clarity Act passed through the Senate Banking Committee with votes from both Democrats and Republicans – 15 to 9 – and will now be reviewed by the entire Senate.
Banks are becoming more involved in blockchain technology. According to Alexandra Steinberg Barrage, a former official at the FDIC, banks are partnering with financial technology (fintech) companies to offer services like secure cryptocurrency storage, digital versions of traditional deposits, and ways to buy and sell digital assets.
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2026-06-16 10:13