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U.S. government regulators are urging the Federal Deposit Insurance Corporation to coordinate cryptocurrency regulation
Svmuu News: On June 8, the U.S. Government Accountability Office (GAO) sent a letter to Travis Hill, Chairman of the Federal Deposit Insurance Corporation (FDIC). The letter noted that blockchain-related financial products and services have grown significantly, and blockchain technology has been added to the high-risk list. The U.S. GAO recommended establishing a coordination mechanism to help regulators, such as the FDIC, jointly identify risks and implement timely regulatory responses. Additionally, under the GENIUS Act passed last year, the FDIC serves as the primary regulator for stablecoin issuers that are subsidiaries of banks under its supervision. The U.S. GAO also recommended that the FDIC rotate the case managers assigned to banks to mitigate threats to independence. The collapse of three banks linked to the crypto industry in 2023 raised questions about whether regulators had taken sufficient action. (Cointelegraph)
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