The most reliable United States Senate ally in the digital asset industry, Cynthia Lummis, has presented its latest cryptographic bill, which would guarantee that mortgage borrowers can use their cryptocurrency holdings to help ensure their loans.
Last month, the director of the Federal Housing Finance Agency, Williamuff, ordered the mortgage giants backed by the government Fannie Mae and Freddie Mac to occur to them proposals that detail how they can include cryptographic to underpin a mortgage. Lummis’s bill “would allow the holdings of a borrower in a digital asset, evidenced and maintained in accordance with a qualified custody agreement, they are included in the reserves of a borrower without conversion of the digital asset in dollars of the United States”, essentially coding what the fing is already looking for.
“This legislation covers an innovative path towards the construction of wealth, taking into account the growing number of young Americans who have digital assets,” Lummis said in a statement on Tuesday, suggesting that these assets could help close the gap to the property of housing otherwise.
“We are living in a digital era and, instead of punishing innovation, government agencies must evolve to meet the needs of a modern generation and with a vision of the future.”
It is not clear if this bill will find traction in Congress or if it could be added to other ongoing legislation efforts. Lummis, the president of the Digital Assets Subcommittee of the Senate Banking Committee, is already working on the main priority of the industry: a regulatory system of the United States for the operation of cryptography markets.
Lummis, which represents Wyoming, has also been fundamental in the promotion of federal cryptography storage, but faces some opposition to the mortgage idea in the bank committee. Senator Elizabeth Warren, the panel’s Democratic ranking, backed away this week’s effort, sending a letter with other Democrats to question the use of volatile digital assets in a central component of the US economy.
The letter to the FHFA, also signed by Senators Bernie Sanders, Chris Van Hollen, Jeff Merkley and Mazie K. Hirono, argued that the movement “could represent risks for the stability of the real estate market and the financial system.”
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