%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment In a recent wave of concern, several US Senators have voiced apprehensions over a proposed expansion of mortgage lending that leverages cryptocurrency assets. The plan, backed by fintech firms and crypto advocates, aims to allow borrowers to use digital currencies like %Bitcoin (CRYPTO: $BTC ) and %Ethereum (CRYPTO: $ETH ) as collateral for home loans, citing their rising mainstream acceptance and potential to broaden access to homeownership. Senators, however, are wary of the risks tied to the volatile nature of %Cryptocurrencies. "The crypto market's wild swings could destabilize the housing sector if not tightly regulated," warned Senator Elizabeth Warren during a recent Senate Banking Committee hearing. Critics argue that a sharp drop in crypto valuations could leave lenders and borrowers underwater, echoing the 2008 housing crisis. They also point to the lack of clear regulatory frameworks for crypto-backed loans, raising fears of fraud, money laundering, and consumer exploitation. Proponents of the plan counter that %Blockchain technology ensures transparency and security, potentially streamlining mortgage processes. They claim it could empower underserved communities by offering alternative credit pathways. Yet, Senators like Sherrod Brown emphasize the need for robust oversight, urging the Consumer Financial Protection Bureau to scrutinize these schemes. As the debate intensifies, the clash between innovation and financial stability remains unresolved. With crypto's role in traditional finance growing, regulators face mounting pressure to balance opportunity with caution.