Crypto investing may have allowed lower-income Americans to buy their own homes at a higher rate than the rest of the population, according to a paper released Tuesday by the U.S. Treasury’s Office of Financial Research.

The rise in cryptocurrency investment in recent years came with a pronounced uptick in debt — most notably mortgages — sought in the areas where digital assets activity was highest, according to the research conducted by the Treasury’s independent arm that sniffs out U.S. economic hazards. It was looking for evidence that such financial stretching may be a danger to U.S. stability, but so far the researchers found that delinquency rates in those places have remained low.

“Low-income consumers in high-crypto exposure areas are disproportionately more likely to take out a mortgage, and the average mortgage size is large relative to pre-2020 average income,” the paper concluded.

“There is little or no evidence of higher levels of distress in mortgage, auto, or credit card debt among consumers in high-crypto exposure neighborhoods,” according to the report. “If anything, delinquency rates remain relatively low.”

This potentially sunny piece of federal research could further

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Author: Jesse Hamilton