Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, Representative Stephen F. Lynch (D-MA), the Ranking Member on the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence and Representative Emanuel Cleaver, II (D-MO), the Ranking Member on the Subcommittee on Housing and Insurance, sent a letter to the U.S. Department of Housing and Urban Development (HUD) Secretary, Scott Turner following reporting that the Administration is exploring ways to implement blockchain and cryptocurrency within the operations of the agency. In the letter, the lawmakers warn of the risky nature of cryptocurrency, which remains an unregulated and highly volatile financial product. The lawmakers emphasize that if used in untested ways within critical federal housing programs, it could destabilize the housing market and harm hard-working families.

In the letter, the lawmakers emphasize that experimenting with crypto at HUD threatens to trigger a repeat of the 2008 foreclosure crisis which was fueled by risky financial products. What’s more, following the Trump Administration’s recent actions to gut key agencies, including the Consumer Financial Protection Bureau, we stand at even greater risk of repeating the past and harming millions who rely on housing programs.

“We write in response to disconcerting reports that the Trump Administration is exploring ways to broadly apply unproven uses of blockchain technology and cryptocurrency (crypto) in the operations of the U.S. Department of Housing and Urban Development (HUD),” wrote the lawmakers. “The federal government cannot allow under-regulated financial products to infiltrate critical housing programs, especially when they have already proven to be dangerous, speculative, and harmful to working families. It is unclear how these technologies, which have not been widely adopted even by the real estate industry, would help HUD meet its mission. Applying this technology to critical operations raises serious concerns about accountability, transparency, and harm to those relying on these housing programs. Rather than gambling America’s housing, the agency should focus on getting Congressionally appropriated funds back out to communities, addressing the affordable housing supply shortage, ending homelessness for over 771,000 people, and increasing homeownership for the millions of Americans who remain locked out by rising house prices and high interest rates.”

In addition, the lawmakers demand HUD halt any action on cryptocurrency until Congress establishes a comprehensive federal framework to ensure proper oversight and protect our nation’s consumers, similar to the Waters-McHenry bipartisan agreement on stablecoins. The lawmakers conclude by encouraging HUD to redirect its resources to upholding the agency’s mission and addressing the worsening housing and homelessness crisis. They request prompt responses to a series of questions on these latest plans no later than April 8, 2025.

See the letter HERE.

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