In the U.S., resistance is growing against a new mortgage policy that allows cryptocurrency assets to be considered in mortgage applications. Lawmakers are warning that this could lead to systemic risks.
Senators Raise Concerns
Five U.S. Senators, including Jeffrey Merkley, Elizabeth Warren, and Bernie Sanders, have sent a formal letter to Federal Housing Finance Agency (FHFA) Director William Pulte demanding answers regarding a new policy that permits unconverted crypto holdings to be considered in mortgage underwriting.
Risks to Housing Market Stability
Lawmakers warn that this directive could reintroduce vulnerabilities reminiscent of the 2023 regional bank crises. They are requesting the FHFA to provide a comprehensive risk assessment of the policy, along with the approval timeline and criteria for eligible cryptocurrencies.
Limited Scope, High Stakes
While the FHFA emphasizes that the directive only applies to U.S.-regulated exchanges, lawmakers remain skeptical. They argue that the policy could set a precedent for the integration of volatile digital assets into America’s $12 trillion housing market.
The situation surrounding the new crypto mortgage policy continues to evoke public and legislative tension, necessitating thorough analysis and consideration of all aspects of this policy.
