#Crypto World
US Senators Sound Alarm Over Crypto Backed Mortage Plan
A crypto mortgage policy initiative is facing growing resistance as lawmakers warn of potential shocks to the housing finance system
Five U.S senators have demanded answers from the FHFA over a new policy allowing crypto assets to count toward mortgage applications.
Lawmakers warn that including volatile digital assets in housing finance could reintroduce systemic risks seen in past banking crises
The FHFA defends the move as limited in scope but critics question governance ethics and the lack of risk transparency
U.S. Senators:
Jeffrey Merkley
Elizabeth Warren
Chris Van
Hollen Mazie
Hirono
Bernie Sanders
Have issued a formal letter to Federal Housing Finance Agency (FHFA) Director William Pulte voicing concerns about a new policy that allows unconverted crypto holdings to be considered in mortgage underwriting
The July 24 letter demands full documentation and transparency regarding a June 25 directive that instructed Fannie Mae and Freddie Mac to begin evaluating verified crypto assets held on U.S regulated exchanges as eligible reserves in single-family home mortgage applications