Multiple Democratic senators in the United States oppose including cryptocurrency as an asset for residential mortgages

ChainCatcher news, according to ledgerinsights, after the Director of the Federal Housing Finance Agency (FHFA) William J. Pulte ordered in June to allow Fannie Mae and Freddie Mac to consider cryptocurrency as collateral for mortgages, Republican Senator Lummis recently proposed the "21st Century Mortgage Act" to legislate this policy. The bill stipulates that compliant custodial digital assets held by borrowers can be directly counted as reserves without the need to convert to USD, but must undergo volatility valuation adjustments.

Democratic senators collectively sent a letter opposing this, pointing out that the high volatility and security risks of crypto assets could threaten the stability of the real estate market. The focus of the dispute between the two sides centers on whether to include crypto assets as collateral and how to scientifically set the valuation discount rate to hedge against volatility risks.