Democrats Challenge FHFA’s Push to Include Crypto in Mortgage Approvals

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A group of Senate Democrats is pushing back against the FHFA’s exploration of cryptocurrency in mortgage lending, warning of potential risks to the housing market.

In a letter to FHFA Director William Pulte, Senators Jeff Merkley, Elizabeth Warren, Bernie Sanders, Chris Van Hollen, and Mazie Hirono demanded clarity on his recent order requiring Fannie Mae and Freddie Mac to study how crypto assets could be used in mortgage underwriting—without requiring conversion to cash.

The lawmakers, citing concerns over financial stability, gave Pulte until August 7 to justify the move. The FHFA has regulated Fannie and Freddie since their government takeover during the 2008 housing crash.