GAO Recommends "Coordinating Mechanism" to Address Gaps in Oversight of Crypto Assets

GAO recommended that the CFPB, CFTC, FDIC, SEC, Federal Reserve Board, National Credit Union Administration, and OCC establish a "formal coordination mechanism" to collectively identify and address blockchain-related risks in a timely manner.

In its study on blockchain and finance, GAO concluded that "legislative and regulatory actions are needed to ensure comprehensive oversight of crypto assets."

GAO stated that no federal regulator has the authority to regulate crypto assets in the spot markets that are not securities. GAO identified several platforms without federal oversight that experienced fraud and trading manipulation. In addition, GAO found gaps in regulatory oversight of stablecoins, stating that there are currently no "uniform standards" for "reserve levels and risks or for public disclosure of reserves."

GAO proposed the establishment of a coordination mechanism that could be used to support consumer protection, mitigate illicit finance and promote responsible innovation.