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GAO Presses FDIC on Crypto Coordination After 2023 Bank Failures
The GAO said the FDIC has not fixed coordination gaps flagged in a 2023 assessment. The GENIUS Act broadens the agency's stablecoin authority just as tokenized deposits expand.
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The Government Accountability Office wants the FDIC to fix how federal regulators coordinate on cryptocurrency risk. A June 8 letter to FDIC Chairman Travis Hill, released publicly this week, said the agency has not fully addressed supervision gaps flagged in a July 2023 assessment.
That assessment found no systematic collaboration across seven agencies – the FDIC, Federal Reserve, OCC, SEC, CFTC, NCUA and CFPB. The GAO wants formal interagency frameworks, not ad hoc responses, as blockchain products multiply.
The timing matters. The GENIUS Act assigns the FDIC significant authority over stablecoin issuers that operate as bank holding company subsidiaries. That legislation broadens the agency's digital-asset remit just as tokenized deposits and distributed ledger settlement gain traction.
The GAO explicitly tied its concerns to the March 2023 bank failures. Silicon Valley Bank, Silvergate Bank and Signature Bank collapsed that month, exposing weak oversight of institutions with technology and crypto ties. The watchdog also recommended the FDIC adopt examiner rotation protocols, arguing that long assignment tenures compromise independence.
The FDIC has made some changes. In March 2025, it dropped a requirement that banks give advance notice before engaging in certain digital-asset activities. In July 2025, it worked with the Fed and OCC on crypto risk management guidance. The GAO said broader coordination remains outstanding.
The risk is fragmented oversight that misses cross-agency threats as stablecoin issuance expands. A stablecoin issuer under FDIC jurisdiction may face rules that conflict with SEC or CFTC guidance. Without formal frameworks, banks and issuers navigate overlapping or contradictory requirements.
The GAO lacks enforcement authority. Its letters, however, build documented pressure that Congress and market participants track. The FDIC must respond formally. A failure to close the coordination gaps leaves banks and stablecoin issuers exposed as federal crypto regulation takes shape.