Some banks are considering expanding into a range of crypto activities, including custody, lending backed by crypto collateral, and facilitating the purchase and sale of these assets for their customers. In the absence of clear guidance, banks should consult with their primary regulator and exercise caution when engaging with customers in these types of activities. I will conclude with a brief comment on supervision.
While the trend of returning to on-site bank examination is continuing, progress has been somewhat slow. This may be driven in part by the varied pace of employees returning to the office. That said, the Fed intends to return to some form of on-site supervision. We find substantial value in those in-person interactions during bank examinations.