US government regulators urge federal deposit insurers to coordinate cryptocurrency regulation

Comparatively, the U.S. Government Accountability Office (U.S. GAO) sent a letter to Travis Hill, chairman of the Federal Deposit Insurance Corporation, on June 8. The letter stated that blockchain-related financial products and services have increased dramatically, and blockchain technology has been added to the high-risk list. The U.S. GAO recommended establishing relevant coordination mechanisms to help regulators such as the Federal Deposit Insurance Corporation jointly identify risks and implement regulatory responses in a timely manner.

Furthermore, according to the GENIUS Act, which was passed last year, the Federal Deposit Insurance Corporation is its primary regulator to oversee the bank's stablecoin issuer. The U.S. GAO also recommended that the Federal Deposit Insurance Corporation rotate case managers assigned to banks to reduce the threat to independence. Three banks linked to the crypto industry went bankrupt in 2023, raising questions about whether regulators are taking sufficient action.