Cryptocurrency exchange Coinbase will allow qualified borrowers to pledge digital assets to fund Fannie Mae-backed mortgage apartments beginning this summer.
In a Thursday notice, Coinbase and its partner, Better Home & Finance, said the mortgage structure plan launching “by summer 2026” will allow borrowers to initially use Bitcoin (BTC) or USDC (USDC) as collateral for loans to fund down payments for homes. The initiative, first announced in March, represented a significant shift in companies allowing digital assets to be used for financing houses.
“We’re excited to expand access to all qualified borrowers to fix an ongoing issue: buyers who qualify on every measure that matters but cannot clear the down payment hurdle because their wealth isn’t where the system expects to find it,” said Better founder and CEO Vishal Garg.
“This isn’t a niche thing. It’s what everyone is going to do once most financial assets are tokenized. It’s just a better way to buy a house.”
The move by Coinbase and Better followed US regulatory agencies under the Trump administration being friendlier to crypto companies and more accepting of digital assets integrated with traditional finance. In June 2025, the US Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to consider crypto as an asset in mortgage risk assessments without requiring a conversion into fiat.
Other mortgage lenders have made similar moves since the FHFA order. In February, Newrez began allowing borrowers to use their cryptocurrency holdings to qualify for a mortgage application.
Volatile crypto-backed mortgages scrutinized for political motivations
Although the price volatility of cryptocurrencies like Bitcoin may present challenges to the mortgage plan, some US lawmakers have accused FHFA head Bill Pulte of being “unduly influenced” by President Donald Trump in supporting such policies.
“Expanding underwriting criteria to include the consideration of unconverted cryptocurrency assets could pose risks to the stability of the housing market and the financial system,” said five US senators in a July 2025 letter to Pulte following the FHFA order.
Republican lawmakers, including crypto proponent Cynthia Lummis, have proposed codifying the FHFA order into law. She introduced the 21st Century Mortgage Act in July 2025, saying government agencies “must evolve to meet the needs of a modern, forward-thinking generation.”
Taxpayers will foot the bill for up to $25 billion in improper Obamacare payments due to organized fraud and improper enrollments in 2026, according to a June 3 report from Paragon Health Institute.
Some 6.2 million enrollments in the healthcare exchanges during the most recent open-enrollment period were improper, the report said, accounting for 27 percent of all enrollments.
The conservative think tank has studied fraud in the Obamacare program since 2024.
The problem of improper enrollments persists despite recent attempts to curtail it, and appears to involve organized efforts by unscrupulous insurance brokers, the report concluded.
Meanwhile, some industry groups have criticized the findings.
Incentives For Fraud
Obamacare's premium subsidies, which cover 100 percent of the health coverage policy for many beneficiaries, and referral bonuses offer an incentive for both enrollees and brokers to abuse the system, the report concluded.
Researchers identified improper enrollments by comparing Obamacare data to Census Bureau population estimates. The improper enrollments were calculated by a state-by-state comparison of enrollments in the lowest income category to the number of people having that income level in the state.
The lowest income category is 100 percent to 150 percent of the federal poverty level, or about $16,000 to $24,000 per year for an individual or about $27,000 to $41,000 for a family of three.
Enrollees with incomes at that level receive the highest subsidies. During the 2026 open enrollment period, 29 percent of enrollees chose a plan with a $0 premium.
That gives enrollees and the agents who sign people up for Obamacare an incentive to misstate their income, the report concluded.
The American Hospital Association has said Paragon's research results are not valid due to flawed methodology. "The Census uses different income and household size definitions than the Marketplace so there is no possibility of the data matching," the group said in an August 2025 statement. The association also said the Census relies on reported income but Obamacare asks for projected income.
The total value of Obamacare subsidies to be paid in 2026 is $88 billion, according to the Congressional Budget Office.
Agents who enroll individuals or families in Obamacare earn a commission averaging around $20 per enrollee per month for as long as the policy is active.
Obamacare received more than 23 million enrollments during the 2026 open enrollment period.
Subsidies and commissions are paid on "effectuated" enrollments, meaning enrollees who selected a plan and paid the initial premium.
The number of effectuated enrollments for 2026 has not yet been released, though about 96 percent of signups became effectuated enrollments in 2025.
Weak Controls
Congress allowed Obamacare's enhanced subsidies to expire in 2025, which reduced the number of people eligible for a 100 percent subsidy.
Yet improper enrollments persist in part because of automatic re-enrollment, said Brian Blase, Paragon's founder and president.
"Automatic re-enrollment remains pervasive. Nearly 40 percent of 2026 exchange enrollees were automatically re-enrolled," Blase told The Epoch Times by email.
That allows previous improper enrollments to carry over from year to year.
Congress and the Trump administration have taken actions to strengthen checks on improper enrollment, but most are not yet in effect.
Enacted law will require annual income eligibility verification. That takes effect in 2028.
The administration implemented stricter verification rules in May 2026, but they did not impact the 2026 open enrollment, which ended Jan. 15.
Legal Action Center, a human rights advocacy group, has opposed mandatory re-enrollment and income verification because it places an administrative burden on those dealing with substance abuse, mental health conditions, or criminal convictions.
"There is an ongoing need for an automatic re-enrollment mechanism, given that some people do not actively return to the Marketplace to make plan choices during open enrollment," the group wrote to Secretary Robert F. Kennedy Jr. in April 2025. Rather than requiring action on the part of enrollees, Legal Action Center urged the federal government to verify continued eligibility using existing data such as the Social Security Administration and state unemployment databases.
Bad Actors
Unscrupulous brokers appear to have contributed to improper enrollments by steering consumers toward plans that pay larger commissions, Blase said. And the report suggests that some agents have created fictitious enrollments.
"Some brokers and agents continue steering low-income enrollees into $0-premium plans," Blase said, even though it may not provide them the best value.
Bronze plans have no premium for an enrollee at 100 percent of the federal poverty level. But the out-of-pocket costs could total nearly $7,500 per year, according to Paragon.
The same individual could qualify for a silver plan for which the enrollee premium plus out-of-pocket costs totaled $415.
"One plausible explanation is that brokers moved enrollees into $0-premium bronze or gold plans because some consumers will only enroll if coverage is free," Blase said. "And phantom enrollees cannot pay premiums."
Paragon defines phantom enrollments as those that are fictitious, or unaware they are enrolled, or are enrolled in other coverage.
In 2024, 35 percent of Obamacare enrollments reported no medical claims. "The percentage of zero-claim enrollees in the exchanges is dramatically higher than observed in the broader private market and strongly suggests a substantial number of phantom enrollees."
Also, about half of all enrollees reported unknown race or ethnicity in 2026, a trend that began in 2024, according to the report. Researchers say this could indicate that the agents had little contact with the enrollees.
"These findings suggest that a substantial portion of recent ACA exchange enrollment growth may not reflect legitimate increases in insured individuals," the report stated.
America's Health Insurance Plans, an association of health insurers, has been critical of Paragon's previous research on phantom enrollees.
"A 'no-claims' year is evidence that a consumer stayed healthy or only had a few months of coverage - not that taxpayer money was misdirected or that their policy was illegitimate," the group said in an August 2025 statement.
Oil Prices Hold Gains As Gasoline Stocks Hit 12 Year Lows, Cushing 'Tank Bottoms' Loom
Brent crude prices are rising back toward $100 per barrel this morning following the latest flare-up in fighting to threaten the U.S.-Iran ceasefire
Prices rose after the U.S. military said Iran fired missiles toward Kuwait and Bahrain, which failed to hit their targets.
The United States said it then struck an Iranian military ground control station on an island in the Strait of Hormuz.
API:
Crude: -6.8MM
Cushing: -279k
Gasoline: +3.5M
Distillate: -214k
DOE:
Crude: -7.97mm - biggest draw since Feb
Cushing: -583k
Gasoline: +3.36mm - biggest build since Jan
Distillate: +1.50mm
US crude stocks fell for the sixth straight week with Cushing inventories testing tank bottoms once again. The week saw an unexpected jump in product inventories with Gasoline's biggest build since January...
Source: Bloomberg
Today's rise in gasoline stocks lifts them off their lowest level for this time of year since 2014...
Source: Bloomberg
Cushing 'tank bottoms' are in sight once again...
Source: Bloomberg
The Strategic Petroleum Reserve saw another huge drawdown this week (down 58mm barrels since the start of the war)...
Source: Bloomberg
Rig counts are on the rise as US crude production drifts back towards record highs...
Source: Bloomberg
US crude and product exports jumped back towards record highs...
Source: Bloomberg
WTI was trading around $95 ahead of the official data...
Finally, economists at Macquarie wrote in a note this morning that crude oil’s muted reaction to the closure of Hormuz has mainly been a function of the oversupply seen before the war, .
The analysts suggested that “the market will be ok for another month or two, especially given commercial crude stocks have been cushioned by SPR/product draws."
However, if the Strait remains closed at the end of the northern summer (Labor Day is Sept. 7), physical availability will tighten materially.
“If the Strait reopens soon, we expect prices to fall sharply. However, with stocks drawing rapidly, if the Strait remains closed, at some point prices will need to move much higher.”
Venezuela’s oil exports inched up from April to hit a fresh seven-year high in May as shipments to the United States and India continued to rise.
Venezuela exported an estimated 1.25 million barrels per day (bpd) of oil in May, up by 0.7% compared to April’s 1.23 million bpd exports and a massive 61% jump compared to May 2025, according to ship-tracking and vessel-loading data reviewed by Reuters.
Venezuela has been steadily increasing its oil exports since the U.S. took control over its oil sales following the capture of Nicolas Maduro early this year.
The U.S. has eased sanctions on Venezuela’s oil industry and its state oil firm PDVSA, allowed Western firms to return to Venezuelan operations, and has encouraged American companies to sign production and export deals.
The U.S. and India have become major buyers of Venezuela’s oil after the sanctions were dropped and the top international oil traders Vitol and Trafigura were tasked to sell most of the crude to buyers.
As a result, the Venezuelan exports rose for a third consecutive month in May, with shipments to India accounting for the slight increase compared to April.
Exports in April jumped by 14% from March levels, with 66 cargoes leaving Venezuelan ports during the month, and volumes at their highest since 2019 when the first Trump Administration imposed sanctions on PDVSA and Venezuela’s oil exports.
In May, a total of 67 cargoes carrying Venezuelan crude were exported, according to the data Reuters has reviewed.
The United States remained the top buyer of Venezuela’s crude, taking in about 558,000 bpd in May, followed by India with 427,000 bpd and Europe with 169,000 bpd. Shipments to all three regions rose in May from April levels.
India’s top private refiner, Reliance Industries, has become one of the three biggest buyers of Venezuelan crude as it imported cargoes sold by Chevron, Vitol, and Trafigura, according to the data.
India is importing the highest volumes of Venezuelan crude in six years as it turns to the South American producer amid the Middle East supply crisis.
May Auto Demand "Stronger Than Expectations", Deutsche Says
In a preview of May U.S. auto sales, Deutsche Bank analyst Edison Yu and his team said industry demand appears to be holding up better than expected. They estimate the seasonally adjusted annual selling rate (SAAR) reached 15.9 million units during the month, modestly above last year's pace of roughly 15.7 million. While total vehicle sales are projected to be slightly lower than a year ago, the comparison is skewed by one fewer selling day in May 2026.
After adjusting for that calendar effect, daily sales rates improved by more than 2%, suggesting underlying consumer demand remains relatively healthy.
We expect May US light vehicle SAAR to come in at 15.9m units. This compares to ~15.7m last year. Absolute sales are expected to be up MoM at ~1.453m units (vs. April at ~1.380m), but down YoY from ~1.475m in 2025. The absolute YoY change doesn't necessarily indicate a significant downgrade in consumers health but is reflective of one less selling day in 2026 resulting in a daily sales rate that actually rose ~2.3%.
The firm's dealer and channel checks indicate that automakers largely maintained pricing discipline throughout the month. Average transaction prices continued to edge higher both sequentially and year over year, reflecting a relatively stable pricing environment. Incentive activity was mixed, however.
Ford increased promotional spending through its employee pricing program, a strategy similar to one used last year, contributing to a notable rise in incentives. Industry-wide incentive levels remained significantly above year-ago levels, driven primarily by Ford and Stellantis, although incentives declined modestly compared with April.
According to Deutsche Bank's conversations with industry participants, geopolitical developments in the Middle East have not yet had a meaningful impact on vehicle demand:
This month, thus far, is stronger than our coming in expectations. Based on our conversations, the Middle East conflict appears to have little impact yet on light vehicle sales. Powertrain mix also appears relatively unchanged despite elevated oil prices. Overall we maintain our full year at 15.9m, still somewhat more conservative than the automaker's latest forecasts.
Higher fuel prices also do not appear to be changing consumer purchasing behavior, as the mix of vehicle powertrains sold has remained largely unchanged.
Looking ahead, Yu and his team left their full-year U.S. light vehicle sales forecast unchanged at 15.9 million units. That outlook remains somewhat below the forecasts recently provided by several automakers, reflecting Deutsche Bank's more cautious stance on the industry's trajectory through the remainder of the year.
On the company level, Ford's aggressive incentive activity continues to stand out, particularly in the full-size pickup segment, where incentives on the F-150 increased materially during the month. General Motors maintained relatively stable pricing and incentive levels, while Stellantis continued to offer some of the highest incentives in the industry despite modest sequential moderation.
Overall, Deutsche Bank views the May sales environment as constructive, with demand trends remaining resilient and pricing conditions generally supportive.
