Agencies nudged to act on coordinating identification, tackling of blockchain risks

Identifying and addressing blockchain risks needs to be addressed by two federal banking regulators, as recommended last year, according to a report issued Tuesday by the congressional watchdog.

In separate reports on “open priority recommendations,” the congressional Government Accountability Office (GAO) said that both the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC) should prioritize coordination with other federal financial regulators on the blockchain risks.

The reports on open recommendations are issued by the GAO when it determines the agencies have not acted recently. The recommendations were made in August of last year.

According to the GAO, it has advised both agencies to develop a coordination mechanism with other federal financial regulators to identify and address blockchain risks. It also advised the agencies to collaborate with other financial regulators to “communicate with banks that have third-party relationships with financial technology lenders about using alternative data in underwriting.”

“Fully implementing these open recommendations could significantly improve FDIC’s efforts to oversee more effectively the safety and soundness of the U.S. banking system and risks to consumers,” the GAO said.

Priority Open Recommendations: Federal Deposit Insurance Corporation

Priority Open Recommendations: Office of the Comptroller of the Currency

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