Cathie Wood, CEO of ARK Invest, applauds the Federal Housing Finance Agency's (FHFA) decision to integrate cryptocurrency into mortgage risk assessments, expecting substantial impacts on Bitcoin.
Impact on Mortgages and Crypto Markets
The FHFA’s recent policy shift includes cryptocurrencies such as Bitcoin in mortgage risk assessments. Cathie Wood views this as a potential game-changer for housing and crypto markets.
FHFA Policy and Its Consequences
The FHFA, overseeing Fannie Mae and Freddie Mac, announced new guidelines incorporating crypto assets into risk calculations without needing fiat conversion. This paves the way for greater institutional involvement and acceptance of digital currencies.
Industry Reaction and Expert Insights
Industry reactions indicate increased institutional interest in digital currencies, potentially driving up Bitcoin demand. This policy may enable more lenders to consider cryptocurrencies in mortgage assessments.
The overall implications of this policy may lead to further blending of traditional financial tools with cryptocurrencies, asserting its significance in the evolving financial landscape.
