Legal debate: Is using Crypto as collateral for housing too risky?
Newrez's decision to accept Bitcoin and Ethereum as the basis for loan approval is facing mixed opinions from U.S. lawmakers. While officials like Bill Pulte support researching the impact of crypto on the housing market, some legislators warn about safety and financial soundness risks. They are concerned that the high volatility of digital assets could lead to unpredictable consequences for consumers. #anhbacong
To mitigate risk, Newrez asserts that they will only accept assets held in centralized wallets under regulatory supervision, rather than personal self-custody wallets. Although currently customers cannot use crypto for direct monthly payments, recognizing them as collateral has already been a significant change. This process helps prevent fraudulent activities in financial reporting and requires absolute transparency from borrowers. This is a balancing act between innovation and ensuring safety that the financial system is striving to address. $BTC $ETH
