Blockchain in Finance

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.