According to CoinDesk, the Federal Reserve (Fed) office examiner failed to prevent Silvergate Bank from transforming from a community lender to a high-flying crypto bank. The report found that Silvergate Bank should submit an application to the Federal Reserve when it switched to full-time crypto business. However, the California bank examiner believed that because Silvergate was still accepting deposits and making loans to customers, it was still a standard commercial bank and was never required to establish new risk protection measures. The report also pointed out that there was a problem of nepotism in Silvergate's senior management. The Federal Reserve has agreed to develop new extended guidance for similar situations in the future.