The U.S. Olympic committee CEO sent a letter to the gymnastics community on Monday.
It offered USA Gymnastics to voluntarily surrender its status saying it's unlikely to overcome its current challenges.
The CEO also said the athletes deserve better.
It comes as the organization is still struggling to get back on its feet after the sex abuse scandal involving Dr. Larry Nassar.
He is serving a life sentence for abusing young athletes under the guise of medical treatment for years.