Democrats Express Concern Over Regulator's Decision To Consider Crypto-Backed Mortgages

Several Democratic senators from US have protested a decision by the Federal Housing Finance Agency (FHFA) to consider cryptocurrency assets in evaluating mortgage applications. The senators have sent a letter to FHFA Director Sandra Thompson seeking information regarding the risks and processes involved in the move.

The issue began when the FHFA asked Fannie Mae and Freddie Mac, the two giant housing finance entities it oversees, to consider how they might include crypto assets, like Bitcoin, in the process of underwriting mortgages without exchanging them into US dollars. The senators are concerned that this would bring instability to the housing market, given how volatile and dangerous crypto assets are.

Cointelegraph said that senators Elizabeth Warren and Bernie Sanders have inquired about how the FHFA plans to protect consumers from the risks of scams, price collapse, and liquidity risks with crypto. They are also concerned about timing and sense of urgency within this initiative, and whether research has been sufficient.

Another region of concern is whether or not there can be any conflicts of interest on the side of those who are making this policy. The legislators have asked for a clear accounting of how the FHFA will evaluate risk, consult professional opinion, and be open.

As reported by Cointelegraph, the senators have directed the agency to report back to them by August 7 with responses to their questions and any internal analysis undertaken so far. 

GENIUS Act Sends Stablecoins Down Payment Utility Way, Cointelegraph Reports

The recently passed GENIUS Act in US is changing the direction of stablecoin businesses by prioritising how they are being used as a payment vehicle rather than an investment token. As reported by Cointelegraph, the law incentivises stablecoin issuers to move away from interest-based or yield-based tokens and issue purely payment-use coins.

The GENIUS Act sets strict requirements for what it calls "payment stablecoins." They must be supported one-for-one by secure, liquid assets like US Treasurys. Issuers will also be required to follow strict regulations, such as regular audits, monthly reports, and anti-money laundering screening. The goal is to build credibility and trust around the use of stablecoins in everyday transactions.

According to the Cointelegraph, the Act will enable firms like payment companies and large retailers to use stablecoins in payroll, cross-border payments, and settlement. The change would also create new products and platforms that are focused on using stablecoins as digital money, rather than the vehicle for receiving returns.

Cointelegraph indicates that the GENIUS Act is a huge change in how US thinks about and legislates on digital currencies. By limiting use of interest-bearing tokens and promoting stable, regulated alternatives, the bill aims to bring more transparency and security into the world of digital assets while enabling its expansion in the real economy.

Ether Dominates Crypto ETP Inflows For 15th Consecutive Week

Cryptocurrency investment products have now seen their 15th consecutive week of inflows, and Ethereum exchange-traded products have been at the forefront. As per Cointelegraph, inflows totalled around $1.9 billion for the period through July 25, with the majority of that, nearly $1.6 billion, going into Ether-branded products.

Cointelegraph noted that it is the second-largest weekly inflow ever for Ether ETPs. Demand rises as investors grow more confident in how Ethereum can be used across areas like decentralised finance and staking. Ethereum ETPs have attracted over $6.2 billion of inflows so far in 2025, already exceeding the total sum recorded in 2024.

On the other hand, Bitcoin ETPs witnessed outflows of approximately $175 million during the same week. This finishes a 12-day streak of wins for Bitcoin products and represents a shift of institutional interest into Ethereum. Cointelegraph reported that during the last six trading days, Ether ETPs registered some $2.4 billion in inflows compared to just slightly over $800 million for Bitcoin ETPs.

The total assets under management in crypto ETPs have now risen to $221 billion, according to Cointelegraph. This pattern of sustained inflows suggests a firm demand on the part of investors in regulated crypto exposure, with one of the favorites being Ether.

Cointelegraph pointed out that the sustained inflows into Ether products suggest a broader shift in institutions' views of crypto investing, with Ethereum viewed as a serious long-term asset class.