US Housing Department Considers Blockchain and Stablecoin Integration to Enhance Operations

The U.S. Department of Housing and Urban Development (HUD) is exploring the potential use of blockchain and stablecoins to improve certain operational functions, according to a ProPublica report citing internal documents.

Per the report, a recent internal meeting at HUD focused on the possibility of using blockchain technology to track grants.

Officials also debated a pilot program where a HUD grantee would receive payments via stablecoin, with the initiative first being tested in a single department before broader implementation.

HUD’s Blockchain Experiment Marks First Step Toward Federal Crypto Integration

Two sources suggested the move could be an early-stage trial for integrating blockchain and cryptocurrencies into federal government operations.

One proposed project involved HUD’s Community Planning and Development (CPD) office—which oversees billions in affordable housing and homeless shelter funding—using blockchain to track financial disbursements to a grantee.

However, the proposal has faced internal resistance.

According to meeting notes, one attendee described the rationale for the project as “not well articulated,” while another HUD official criticized the plan in a staff memo, calling it “dangerous and inefficient.”

They argued that stablecoin payments could introduce unnecessary complications and potential volatility.

Despite skepticism, subsequent discussions reflected a more divided stance among HUD staff.

Some officials supported blockchain integration, suggesting grantee payments could be made in cryptocurrency or a “stable currency.”

A finance department representative indicated that blockchain could eventually be expanded across the agency, starting with the CPD.

However, a HUD spokesperson dismissed speculation of imminent adoption, stating, “The department has no plans for blockchain or stablecoin. Education is not implementation.”

The discussions at HUD come amid a broader federal dialogue on digital assets.

Former President Donald Trump has embraced cryptocurrency, with his policy advisors, including Elon Musk, advocating for blockchain as a cost-cutting tool.

Meanwhile, U.S. Treasury Secretary Scott Bessent stated at the White House Crypto Summit on March 7 that the government is actively considering a regulatory framework for stablecoins to ensure the U.S. dollar remains the world’s dominant reserve currency.

OCC Eases Crypto Banking Rules After Trump Pledges to End Crackdown

The U.S. Office of the Comptroller of the Currency (OCC) has relaxed its restrictions on banks engaging with crypto after former President Donald Trump pledged to end regulatory barriers hindering the industry.

Last week, the OCC clarified that national banks and federal savings associations can now engage in crypto custody, stablecoin-related activities, and participate in distributed ledger networks.

The decision was outlined in Interpretive Letter 1183, which removes the requirement for OCC-supervised banks to seek “supervisory nonobjection” before engaging in crypto-related activities.

Acting Comptroller of the Currency Rodney E. Hood emphasized that the move aims to “reduce the burden on banks” and ensure consistent regulatory treatment of crypto-related banking activities.

Operation Chokepoint 2.0, an initiative that limited crypto firms’ access to banking services, has been a major point of contention within the industry, particularly during the 2024 U.S. election.