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

Crypto Crackdown Blog Banner | Defy Mortgage

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.

Recent Reads

Sep 11, 2023

Market Report: Potential for Entrepreneurial, 1099 Contractors & Self-Employed Borrowers

All The Trends, Tips, and Factors For Entrepreneurial, 1099 Contractors & Self-employed Borrowers To Consider   Introduction In the ever-evolving…
Aug 23, 2023

The Top Questions to Ask a Mortgage Lender

Becoming a homeowner is a monumental step, and securing the right mortgage and asking the right questions play pivotal roles…
Aug 10, 2023

The Top Three Mortgage Mistakes Buyers Make During the Homebuying Process

(& how you can help yourself avoid them)   For many, purchasing a home is a dream come true, representing…
Jul 19, 2023

Unlocking Mortgage Opportunities: How Asset Depletion Can Help

Introduction Asset depletion -- a type of Non-QM option also known as “asset dissipation,” helps borrowers get the home loan…
Jul 11, 2023

Interesting Facts About Interest-Only Loans

Date The Rate, Marry The Property   Introduction Curious about interest-only loans? In this blog post, we'll explore the ins…
Jul 7, 2023

Building a Strong Foundation: A Guide to Construction Loans

Introduction If you’re a real estate investor looking to fund the ground-up construction of a new investment property or doing…
Jun 29, 2023

A Guide To Foreign National Loans

Empowering Foreign Borrowers To Invest In United States Real Estate   Introduction  Purchasing a home is a big step and…
Jun 21, 2023

The DL on P&L Loans

Profit & Loss Statement-Based Loan Qualification   Introduction US business owners and self-employed individuals enjoy a distinct advantage under the…

Ready to take the next step?

Get Started Now Talk To Us