Democrats Launch Investigation Into FHFA’s Controversial Crypto Mortgage Proposal

Washington turns up the heat on regulators as digital assets collide with traditional housing finance.

Lawmakers demand answers on risky crypto-backed loans

The FHFA's pilot program—which would allow cryptocurrencies as collateral for mortgages—faces mounting political opposition. Progressive Democrats warn this could expose homeowners to wild crypto volatility while creating new systemic risks.

Behind closed doors, whispers suggest Wall Street banks are salivating over the prospect of securitizing these digital-asset loans—because what could possibly go wrong with repackaging speculative tokens into mortgage-backed securities?

As usual, regulators appear five steps behind the innovation curve while the crypto industry races ahead. Will this end in groundbreaking financial inclusion...or just another 2008-style crash waiting to happen?