The U.S. Government Accountability Office is pressing the Federal Deposit Insurance Corporation to finish building a cross-agency coordination mechanism for crypto oversight, flagging blockchain technology risks as one of two areas that still demand urgent attention from the banking regulator.
The GAO’s priority open recommendations letter for the FDIC, dated June 8, 2026 and publicly released on June 15, 2026, found that the agency carried six open recommendations, including three classified as priority items.
Among those unresolved items, addressing blockchain technology risks stood out as one of just two areas the watchdog said warranted “timely and focused attention.” The recommendation traces back to a 2023 GAO blockchain report that called on the FDIC to jointly establish a formal coordination mechanism with six other federal regulators, including the Consumer Financial Protection Bureau, the Commodity Futures Trading Commission, the Federal Reserve, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.
Why the coordination gap persists
The goal of the recommendation is straightforward: create a structured process so that federal agencies can identify blockchain-related risks together and develop a timely regulatory response rather than working in silos.
Regulators have taken partial steps. The Financial Stability Oversight Council launched a Digital Asset Working Group in April 2024, and agencies documented regular meetings through July of that year. Despite that progress, the GAO’s assessment as of March 2026 was that the recommendation remained “open, partially addressed,” because agreed-upon cross-jurisdiction response processes and timeframes were still incomplete.
The FDIC itself has shifted posture on banks and crypto. On March 28, 2025, the agency rescinded a 2022 guidance letter that had required banks to notify the FDIC before engaging in crypto-related activities. Under the updated policy, FDIC-supervised institutions may pursue permissible crypto-related activities without prior approval, provided they maintain appropriate risk management controls.
What stronger coordination could mean for banks and crypto firms
The watchdog’s persistence matters because the FDIC is the primary federal regulator for thousands of state-chartered banks. Its posture toward digital assets shapes whether banks offer crypto custody, process stablecoin transactions, or partner with digital asset firms. Without a finished coordination mechanism, banks face the risk of inconsistent expectations across agencies.
For crypto businesses that depend on banking access, the stakes are practical. A bank that gets conflicting signals from the FDIC and the OCC, for example, may pull back from servicing crypto clients rather than navigate regulatory ambiguity. A completed coordination framework would, in theory, reduce that friction by aligning supervisory expectations.
The push also comes at a moment when institutional crypto products are expanding. BlackRock’s planned Bitcoin Premium Income ETF and growing institutional token holdings highlight why regulatory clarity from banking supervisors is increasingly relevant to mainstream finance.
Why this matters for the U.S. crypto market right now
This is not a new enforcement action or a fresh crackdown. It is a follow-through story: the GAO first made this recommendation in June 2023, and three years later, the work remains unfinished. That timeline itself signals how slowly crypto oversight infrastructure moves relative to the pace of market development.
Bitcoin traded near $65,965 as the letter became public, while the Fear & Greed Index sat at 23, reflecting extreme fear in the market.
The cautious market mood underscores why bank-level regulatory clarity carries weight. As exchanges like Upbit expand token listings and new crypto investment vehicles reach retail investors, the gap between fast-moving markets and slow-moving oversight coordination becomes harder to ignore.
For policy watchers, the next milestone is whether the FDIC and its partner agencies formalize the response processes and timeframes the GAO is asking for. Until the recommendation moves from “partially addressed” to closed, the coordination gap remains an open question for every bank weighing crypto exposure.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
