The legalization of cryptocurrencies in the USA has received a new impetus following directives from the Federal Housing Finance Agency. Now cryptocurrencies can be used as collateral for mortgages.
Major Developments in Cryptocurrencies
Recently, large American banks have started considering the use of cryptocurrencies in their credit risk assessment processes. However, the latest changes initiated by the Federal Housing Finance Agency overshadow previous updates.
Impact of the New Directive
The FHFA has instructed Fannie Mae and Freddie Mac to incorporate cryptocurrencies into their mortgage assessment processes. According to FHFA Director Bill Pulte, "After extensive research and President Trump's vision, I have instructed to start recognizing cryptocurrencies for mortgage purposes."
Prospects of Using Cryptocurrencies in Mortgages
The new agency aims to use cryptocurrencies as a novel asset class that creates wealth generation opportunities. Incorporating cryptocurrencies into mortgage lending could broaden credit access for borrowers and help create a more sustainable housing market.
With the new rules regarding the use of cryptocurrencies in mortgages, new opportunities emerge for borrowers and businesses, potentially changing the financial system in the USA.
