Shocking! US Mortgages May Be Secured by Cryptocurrency?

Family, big news! Wyoming Senator Cynthia Lummis revealed that following the signing of the stablecoin bill 'Genius Act', the 'Clarity Act' has become the new focus. There is a definition of 'ancillary assets' in it, aiming to clarify the regulatory scope for the SEC and CFTC, making the categories of securities and commodities clearer in the future.

But even more explosive is that she is also pushing for a bill that allows cryptocurrency to be used as collateral for mortgage applications. If this comes true, the impact would be enormous! For the cryptocurrency market, this is definitely a shot of 'epinephrine', instantly boosting the recognition and application scenarios of cryptocurrencies, and a large amount of capital may flow in, potentially causing the prices of mainstream coins like Bitcoin to soar. Just think about it, cryptocurrency, which was originally detached from the traditional financial system, suddenly being linked to large financial transactions like mortgages—who wouldn't say that's impressive!

For the real estate market, it will also stir quite a wave. Historically, the difficulty of obtaining loans has been a stumbling block for many homebuyers. Now, with cryptocurrency as a collateral option, those with crypto assets will have broader loan channels, which could stimulate the sluggish real estate market and make transactions more active. However, we must also view this rationally; the high volatility of cryptocurrencies is a double-edged sword. Prices can fluctuate dramatically; today they may be valuable, but tomorrow they could drastically shrink, posing significant risks to financial institutions. If the value of the cryptocurrency used as collateral plummets, the borrower's risk of default increases, potentially triggering a chain reaction similar to the subprime mortgage crisis, which is not an exaggeration.

Moreover, from a regulatory perspective, the existing financial regulatory framework is clearly unprepared for this new situation. How to establish reasonable regulatory rules to ensure market stability is an urgent issue that needs to be addressed. The progress of this series of cryptocurrency-related bills in the US indicates that the financial industry is about to undergo transformation. What does everyone think about using cryptocurrency for mortgage collateral?