Recent developments highlight significant changes in cryptocurrency regulation in the US and the UK. While the US pursues integration of digital assets into its financial system, the UK tightens restrictions.
Cryptocurrency in US Mortgage Financing
The Federal Housing Finance Agency (FHFA) has instructed mortgage giants Fannie Mae and Freddie Mac to propose recognizing cryptocurrency as an asset for mortgage risk assessment. This marks a major shift in federal housing policy and aligns with President Donald Trump’s vision to position the US as a leader in crypto innovation. Importantly, only cryptocurrencies held on regulated central exchanges will be considered to ensure compliance.
Barclays Blocks Crypto Purchases
In contrast to US trends, Barclays, one of the leading banks in the UK, will begin blocking cryptocurrency transactions made through credit cards. This decision stems from concerns about the high risks associated with digital assets and a lack of adequate consumer protections. The bank emphasized that falling cryptocurrency prices could lead customers into unmanageable debt.
GENIUS and CLARITY Acts Gain Momentum
Senator Cynthia Lummis expressed optimism that Congress may pass two significant crypto bills — the GENIUS and CLARITY Acts — by the year’s end. Lummis, who chairs the Senate Banking Committee's digital asset subcommittee, highlighted the challenges of securing bipartisan support for crypto legislation. While some Democrats support these initiatives, others warn against legislative ties that could lead to political strife.
Thus, a notable divergence in regulatory approaches to cryptocurrency is apparent between the US and the UK. The US is moving towards integration of digital assets, while the UK focuses on restrictions and a protective stance.
