Five Democratic senators, led by Jeff Merkley, have demanded answers from the director of the Federal Housing Finance Agency (FHFA), William Pulte, regarding his plan to incorporate cryptocurrencies into mortgage risk assessments.
In a letter sent on Friday, the lawmakers — including Elizabeth Warren, Bernie Sanders, Chris Van Hollen, and Mazie Hirono — asked Pulte to describe the risks and benefits of allowing cryptocurrencies to be considered in mortgage approvals without converting them to US dollars.
They requested a response by August 7.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange
Last month, Pulte ordered Fannie Mae and Freddie Mac to draft a proposal on how cryptocurrencies could be taken into account in single-family mortgage assessments.
The FHFA has overseen the two government-backed mortgage giants since their bailout in 2008 following the subprime mortgage crisis.