Page 1 GAO-25-108049
Comptroller General
of the United States
May 15, 2025
The Honorable Paul S. Atkins
Chairman
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Priority Open Recommendations: Securities and Exchange Commission
Dear Mr. Chairman:
Congratulations on your appointment. The purpose of this letter is to call your personal attention
to our open priority recommendation for the Securities and Exchange Commission (SEC), which
is enclosed.
1
Additionally, there is one other open GAO recommendation that we will continue to
work with your staff to address.
2
We are highlighting the following area that warrants your timely and focused attention.
Specifically:
Blockchain technology. In 2023, we found that financial regulators lacked an ongoing
coordination mechanism for addressing blockchain risks in a timely manner. For example,
regulators identified financial stability risks posed by stablecoins in 2019 but did not identify the
need for action to address these risks until November 2021. We recommended that SEC and
the other federal financial regulators jointly establish or adapt an existing formal coordination
mechanism to identify and address risks posed by blockchain-related products and services.
Such a mechanism would help SEC and the other regulators collectively identify risks and
develop and implement a regulatory response in a timely manner.
Please see Enclosure 1 for additional details about the status and actions needed to fully
implement this recommendation.
We also provide in Enclosure 2 additional information on SEC’s recommendation
implementation rate, as well as implemented and closed recommendations since our May 2024
letter to Chairman Gensler. The enclosure also discusses relevant management challenges
from our High-Risk List that apply to SEC. Additionally, in response to legislation enacted in
December 2022, the enclosure includes information on any additional congressional oversight
1
GAO considers a recommendation to be a priority if, when implemented, it may significantly improve government
operations—for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse; or making
progress toward addressing a high-risk or duplication issue.
2
In February 2025, GAO recommended that SEC and five other agencies jointly prescribe regulations or guidelines
for incentive-based payment arrangements. GAO, Bank Regulation: Agencies Should Finalize Rulemaking on
Incentive Compensation, GAO-25-107032 (Washington, D.C.: Feb. 20, 2025).
