U.S. Democratic Party Expresses Concerns Over Review of Virtual Assets as Collateral for Mortgage Loans

U.S. Democratic senators have expressed concerns about using virtual assets that have not been converted to cash as collateral for mortgage loans.

According to a report by Cointelegraph on the 28th (local time), U.S. Democratic senators sent a letter to the Federal Housing Finance Agency (FHFA) stating, "Under current policy, corporations or federal, insurance, and mortgage lenders cannot consider virtual assets when determining whether to issue a loan. Expanding underwriting standards to consider unconverted virtual assets as part of the loan assessment could pose a risk to the stability of the housing market and the financial system."

They further stated, "While the market is maturing, as long as the volatility and liquidity of the past persist, borrowers using virtual assets could be forced to liquidate their positions and risk default. Moreover, the risks of loss due to scams or cyber hacking, as well as physical theft, are also heightened."