From the U.S. Government Accountability Office, www.gao.gov

Transcript for: Blockchain in Finance

Description: Blockchain creates and records tamper-resistant
transactions by multiple parties without a central authority, such as a
bank, when used for financial transactions. Recent price crashes,
bankruptcies, and fraud involving crypto assets, such as bitcoin and
other cryptocurrencies, raised concerns about regulation and the risks
consumers face. Regulatory gaps may limit regulators' ability to address
risks posed by blockchain-based products like crypto asset trading
platforms and payment stablecoins.  GAO recommends that Congress
consider legislation to address these risks.

Related GAO Works: GAO-23-105346 - Blockchain in Finance: Legislative
and Regulatory Actions are Needed to Ensure Comprehensive Oversight of
Crypto Assets

Released: July 2023

Blockchain technology offers the potential for faster and cheaper
financial transactions with no middlemen.

But it also poses risks. 

Recent price crashes, bankruptcies, and fraud involving crypto assets,
such as bitcoin and other cryptocurrencies, raised concerns about
regulation and the risks consumers face.

There are gaps in federal regulation for stablecoins--a kind of crypto
asset--and trading platforms for crypto assets. This leaves consumers and
investors vulnerable. 

We recommended that Congress consider legislation to address these
risks.

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For more info, check out our report GAO-23-105346 at: GAO.gov