Crypto Investors Brace for Crackdown? Here’s what you should do

Defy Mortgage
Mar 9, 2023 • 2 min read
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According to coverage in the Wall Street Journal, “the walls are closing in around crypto.” (The link is here, but fyi, it’s behind a paywall.)

It’s an interesting take on regulators finally deciding that crypto trading needs some structuring around the digital-currency business. And they mean business, as some trading was halted in recent weeks.

“The scope of such actions suggests that the SEC and other regulators want to rein in pillars of the crypto market such as stablecoins—digital coins that maintain a price of $1—and staking, a common way for investors to earn interest on their crypto,” the article states.

So while regulators are temporarily halting the issuance of some forms of cryptocurrency, there is no indication that the walls are literally “closing in,” beyond the catching lead to the article – talk about a hook! That said, it’s important for a crypto investor to know their options in the meantime.

One appropriate safe haven? Expanding property portfolios.

For real estate agents with clients who want to leverage their investment portfolios to purchase property, there are actually several options for those investor-borrowers to use their alternative assets to easily qualify for a mortgage.

And we are not alone in claiming that the SEC is motivated by recent news headlines that present crypto investments in an unflattering light. In the article, Coy Garrison, a former regulator and now a partner at Steptoe & Johnson LLP who advises clients on crypto legal issues said the SEC now wants to “be viewed as the responsible cop on the beat,” who notes that crypto services such as lending have been available for years, but the SEC only recently took formal action against them.

“You are starting to see opportunistic and uneven actions that are designed to try to bring major industry players and platforms within the SEC’s jurisdiction,” Mr. Garrison said in his interview with the Wall Street Journal. “They have a tenuous connection to investor protection. These products have been offered for a long time.”

So please, don’t drink the Kool-aid. As the digital dollar becomes more popular, more companies and markets are beginning to accept it in their systems. The mortgage market is no exception. More mortgage lenders are seeing the benefits and implementing crypto mortgages into their product offerings.

Borrowers should take advantage of the dip in mortgage rates and rise in crypto popularity now before potential future market shifts. Defy Mortgage is bringing a simplified process to borrowers who want to use alternative assets to obtain a mortgage.

Interested in hearing about how Defy Mortgage redefines a more secure and efficient loan process and what that means for your clients? Contact us here.

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