Is the national team officially entering to 'buy the dip'? Fannie Mae and Freddie Mac are eyeing your crypto wallet, this signal is ten times harsher than Musk's tweets!
Sisters and brothers, something big is about to happen in the crypto world! This time it's not just some big shot tweeting a dogecoin meme, but the serious 'U.S. mortgage national team'—Fannie Mae and Freddie Mac have been instructed to study how to include our Bitcoin and Ethereum cryptocurrencies in mortgage risk assessments! What does this mean? Simply put, in the future when you apply for a mortgage, banks will not only look at your salary and savings but may also glance at how much your crypto wallet is worth!
This news has blown up! What impact does it have on our crypto world? Let Anna break it down for you, with a bit of insider info:
The biggest good news: Official 'stamp of approval'!
Plain talk: In the eyes of traditional financial bigwigs, crypto assets used to be equivalent to 'casino chips' or 'air'. Now even the two government-sponsored enterprises that control a large portion of U.S. mortgage loans are starting to study this seriously, what does that mean? It means the national team is going to investigate and say, 'This thing, seems to be somewhat useful?' This is a milestone 'rebranding'! When institutions see this: 'Wow, even the two government-sponsored enterprises are interested? Then we better study this quickly!' Confidence is directly skyrocketed.
Anna's viewpoint: Don't underestimate this 'research', its signal significance far exceeds short-term substance. It's like back in the internet bubble, when big companies started making websites; although there were a lot of bad websites in the early days, the direction was correct! The status of crypto assets as a 'new type of asset' has now been brought to the forefront.
The real money imagination space: A spring for new and old investors?
Plain talk: Just think, if in the future you’re a freelance worker in the crypto space, with income fluctuations, not much in bank savings, but hoarding a lot of Bitcoin. Previously, finding a bank loan to buy a house was difficult! But if new regulations are implemented, and banks can consider the value of Bitcoin in your wallet (with a discount) as part of your 'assets' or 'reserves', your chances of loan approval could skyrocket! Isn't this a new buying path for crypto folks? The potential demand is enormous!
Anna's blood and tears experience: Think about those working at Coinbase or Binance, or brothers who made money from NFT or DeFi projects; in the past, they could only flaunt luxury cars and ape avatars, but in the future, they might really be able to flaunt property titles, and it might be secured with crypto! This allure is massive, attracting more people and money into the crypto sphere.
Anna's viewpoint: This is the most practical good news logic—broadening application scenarios and introducing incremental funds. Housing is a basic need, and being linked to housing greatly enhances the 'utility' and 'value storage' properties of crypto assets. However, it will definitely prioritize more liquid Bitcoin (BTC) and Ethereum (ETH), while altcoins still have to endure.
BUT! Don't celebrate too early, there are 'pits' ahead:
Volatility, the number one enemy!
Plain talk: What do banks fear the most? Risk! In our crypto world, prices can fluctuate by dozens of percent in a day. Today, the 1 Bitcoin you mortgaged is worth $50,000, enough for a down payment; tomorrow it may be halved to $25,000, won't the bank be crying? How to 'price' crypto assets? How much collateral is safe (for example, a coin worth $100,000 only allows you to mortgage $50,000)? If there's a crash, do you need to immediately add more money (additional margin)? How to quickly sell your coins to cut losses (liquidation)? Until these problems are solved, banks won't sleep well at night!
Anna's sharp remarks: Just think about LUNA going to zero overnight... If banks accepted this as collateral, they would go bankrupt in no time! So, in the early stages, it can only be a very small number of 'stable' coins (mainly BTC and ETH), and the collateral rate will be very strict (possibly as low as 30%-40%), with a lot of conditions. Want to rely on trading MEME coins to mortgage a house? Dream on!
The attitude of regulatory authorities is key!
Plain talk: The SEC (U.S. Securities and Exchange Commission) still sees cryptocurrency like a 'monster', without clear classifications (is it a commodity? Security? Or what?). The CFTC (Commodity Futures Trading Commission) and the Treasury are also keeping an eye on it. Fannie Mae and Freddie Mac are 'government-run' agencies, so they wouldn’t dare to act recklessly without the nod from regulatory authorities. Compliance, anti-money laundering (AML), and know your customer (KYC) regulations are all inescapable.
Anna's viewpoint: This is a process of 'dancing with shackles'. The two government-sponsored enterprises are exploring, but whether and when it can be implemented depends entirely on the overall attitude of U.S. regulators towards cryptocurrency—is it 'reconciliation' or 'continued crackdown'? Uncertainty is extremely high!
Safety and technology are not to be taken lightly!
Plain talk: How can banks safely 'custody' your Bitcoin? Store it on their servers? What if they get hacked? Find a third-party custodian? Is it reliable? If the private key is lost, the coins worth billions could be truly gone (think FTX!). Custody, valuation, liquidation—this entire set of mature systems in traditional finance is still at the 'elementary school' stage in the crypto world.
Anna reminds: This is a big benefit for professional crypto custody institutions (like those doing institutional business), with demand surging! But the requirements for technology and services are also top-notch.
So, Anna summarizes: The two government-sponsored enterprises’ motion gives the market a powerful shot of 'adrenaline' (confidence soaring, possibly pushing up coin prices) in the short term, opens a 'hard mode' challenge game (volatility, regulatory, technical challenges are all bosses) in the medium term, and may open a 'new door to wealth' (truly integrating crypto assets into mainstream finance, bringing massive funds and users) in the long term.
What should we do now? Not to rush in blindly! But to focus on two points:
Regulatory direction: Will the SEC and the Federal Reserve's statements on cryptocurrency be a 'green light' or a 'yellow light'?
Pilot progress: Will the two government-sponsored enterprises conduct a small-scale test? What coins will they use? How stringent will the conditions be?
Sisters, this script has just turned to the first page. Is it a prelude to 'epic good news', or another 'big noise with little rain' test? Which type of coin do you think is most likely to get this 'mortgage entry ticket' first? Get the comments buzzing and chat with Anna about your insights! Don't forget to like and follow Anna, the cryptocurrency storm is brewing, and she'll help you stay steady!
