UWM (United Wholesale Mortgage), a prominent provider of mortgages in the United States, ascertained to halt the permission for its customers to have payment settlements in cryptocurrency as it referred to some regulatory uncertainty prevailed around the crypto industry being the reason.
Change of opinion
In August, United Wholesale Mortgage (a wholesale lender based in Michigan) declared that the consumers thereof would be permitted to utilize Bitcoin (BTC) for recompensing home loans, and in this way, it became the earliest chief mortgage lender throughout the United States, which adopted the virtual assets as a method of payment. With time, it incorporated Dogecoin and Ethereum as the other options. At that time, the UWM’s CEO and President, Mat Ishbia, had stated that they were thrilled for having the status of the initial mortgage lender, which had effectively carried out the pilot of the respective technology, and that they would innovate for a comprehensive period.
As per a report by CNBC, the platform has terminated its crypto provision just after two months. Ishbia disclosed that in recent times the demand from the consumers was not specific to the necessary extent because just a single mortgage payment was made in September as well as during October, there was the addition of five more being settled in crypto. He expressed that due to a low demand level as well as regulatory pressure, it turned out to be much difficult for the platform to carry on. However, the executive confirmed that the firm would follow its plan of further developments in the field of cryptocurrency to take it to the mainstream, and in this way, it would deliver such a method of payment if it becomes possible for it.
The urgency of crypto legislation
Although it has been urged by many several experts from the financial watchdogs in the United States that the regulations should be implemented on the industry of virtual assets, some also gave the opinion that the current status of the situation should carry on. Elon Musk (the CEO of Tesla) also supports this viewpoint as in the recent month he recommended the U.S. government should not regulate cryptocurrency in some other way because the development of the authorities would be hampered by doing so. Gary Gensler (the chairman of the SEC) and Jerome Powell (the chairman of the Fed) recently made it clear once again that the government does not intend to prohibit virtual assets.