Banking supervision related to crypto assets has come to the fore again in the USA. The government oversight agency, the Government Accountability Office, or GAO, has asked the Federal Deposit Insurance Corporation to establish stronger coordination with other agencies in overseeing blockchain-related risks. According to the institution, a common and continuously functioning framework against financial threats associated with crypto assets is still not sufficiently formed.
Clear warning from GAO to FDIC
GAO’s June 8 letter was sent to FDIC Chairman Travis Hill. In the article, it was stated that the institution did not adequately implement previous recommendations regarding blockchain auditing. The basis of these criticisms is based on the previous assessment published by GAO in July 2023.
In this evaluation, it was emphasized that there was no continuous and systematic cooperation between major federal supervisory agencies such as the FDIC, US Federal Reserve, OCC, SEC, CFTC, NCUA and CFPB. GAO advocates establishing permanent interagency protocols rather than piecemeal initiatives.
According to GAO, with the proliferation of blockchain-based financial products, custody services, tokenized deposit platforms and distributed ledger-supported reconciliation systems have become more prominent; Therefore, if common control mechanisms are not strengthened, regulatory deficits may also grow.
GAO pointed out that banks and financial institutions have increased their activities in the field of digital assets, especially in the last two years. According to the agency, this expansion creates risks that transcend the boundaries of a single regulatory agency and necessitates closer coordination.
Stablecoin regulation increases burden on FDIC
Another prominent topic in the news was the new powers given to the FDIC with the GENIUS Act. The regulation imposes significant oversight responsibilities on the agency over certain stablecoin issuers operating as subsidiaries of FDIC-regulated banking institutions. Thus, the FDIC’s mandate regarding digital assets has expanded even further.
Mini glossary: The FDIC is the federal agency in the United States that administers bank deposit insurance and supervises certain banks. Stablecoin, on the other hand, refers to a type of digital asset whose value is generally tried to be fixed to an asset such as the dollar.
Efforts to create a more comprehensive framework for the crypto asset market are also ongoing in Congress. Possible new regulations are expected to more clearly separate jurisdictions over digital assets among federal agencies. GAO states that one of the most critical deficiencies in this process continues to be interagency coordination.
2023 banking crises reminded again
GAO also linked its warnings to banking shakeups in 2023. Silicon Valley Bank, Silvergate Bank and Signature Bank collapsed in a short time in March 2023. These developments raised questions about how institutions with technology and crypto connections are audited.
The oversight agency also recommended that the FDIC develop a rotation practice for case managers serving in oversight processes. It was shared that the impartiality of auditors who remain in the same position for a long time may be weakened and the quality of the examination may decrease.
The steps taken were not deemed sufficient
The FDIC has taken some actions following GAO’s previous recommendations. The agency joined the US Federal Reserve and the OCC in guidance on oversight of crypto risks in July 2025. However, GAO believes that the overall recommendation is still not fully implemented.
The FDIC also changed its approach to institutions’ crypto activities in March 2025, removing the requirement for banks to notify ahead of some digital asset transactions. Despite this, GAO argues that actions taken by individual agencies will not be enough to close systemic gaps that cut across multiple regulatory areas.
