United Wholesale Mortgage (UWM), one of the leading bulk and acquisition lenders in the U.S., has decided to discontinue its use of Bitcoin (BTC) payment arrangements. UWM formally stated on Thursday that the firm has completed the first-ever crypto mortgage trial, taking five cryptocurrency deposits in October and one in September. The company did not provide any other information regarding the test, such as a list of the cryptocurrencies that were used in it or a list of the firms who aided the company in conducting the trial.
Successful Trail Program
According to UWM CEO Mat Ishbia, “We are thrilled to become the first mortgage lender to effectively launch this innovation and to further show that we are thinking for the long term.” Yet, despite having completed a fruitful test program, the mortgage company has decided to refrain from accepting Bitcoin payments in the future, citing concerns about related issues such as regulation: “Given the current mixture of additional costs and policy barriers in the cryptocurrency world, we’ve ascertained that we are not looking to stretch beyond a test program at this moment.”
UWM stated that the trial procedure assisted the company in learning about cryptocurrency financial transactions and preparing the firm to make them available “whenever digital currencies become something that would move the organization ahead.” For the near future, the lender stated that it will continue to constantly watch advancements in the cryptocurrency and blockchain industries for possible application.
UWM, the second-largest mortgage company in the United States, said in August that it would be experimenting with cryptocurrency mortgage payments, with the goal of testing mortgage payments in digital currencies such as Bitcoin and Ethereum (ETH), among others. The corporation announced its intent in combination with the release of UWM’s second-quarter financial figures, which showed the firm made approximately $140 million in net earnings. UWM has not yet released its third-quarter results, as of the time of this writing.
Coinbase Proposes Extensive Digital Asset Laws
An American cryptocurrency exchange, Coinbase, has produced a digital asset policy position, which provides both a rationale and a theoretical foundation for the complete legislation of crypto assets in the US. The news comes after Coinbase CEO Brian Armstrong claimed the SEC threatened to prosecute his organization if it offered a crypto yield scheme that the SEC deemed an asset. This scheme promised a 4% annual return on USDC investments. Coinbase has since halted the program’s debut due to the SEC’s purported warning.
Brian Armstrong’s digital asset proposed policy fulfills a conversation with TechCrunch in which he stated that his organization was producing a draft legislative framework for federal politicians to evaluate. “Coinbase wishes to be a helpful champion for how the US can establish reasonable regulations,” he said.
The idea is the result of dozens of talks with industry leaders, regulators, crypto pioneers, and scholars over the previous few weeks. We have discussed our crypto regulation approach with 30+ crypto agencies, 25+ congress members and/or staffers, 4 major legal firms, and 3 trade associations.” Our policy staff is doing amazing work, and we are attempting to help.”