Economist Peter Schiff is sounding the alarm over a new housing finance initiative. The plan allows borrowers to use digital assets for home purchases. Schiff argues the move creates a “free ride” for crypto holders at the expense of the public.

The Crypto-Collateral StructureSchiff Critiques Downside Risk

Schiff took to X on Friday to criticize the government-sponsored enterprise (GSE) involvement.

“Fannie and Freddie guaranteeing mortgages with pledged Bitcoin as the only down payment means HODLers get a free ride. If Bitcoin keeps going up, they keep all the gains. If Bitcoin crashes, they walk away from their mortgages, sticking the GSEs and taxpayers with huge losses.”

The…

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