Federal Officials Call for Immediate Halt to Controversial Housing Program Experiments

Democrats Probe HUD's Use of Cryptocurrency and Blockchain Technology

A House subcommittee chaired by Rep. Maxine Waters (D-Calif.) is investigating the Department of Housing and Urban Development's (HUD) use of cryptocurrency and blockchain technology, ProPublica has learned.

In a letter sent to HUD Secretary Ben Carson on February 14, Waters, the chairwoman of the House Financial Services Committee, asked for information on the department's use of blockchain and cryptocurrency in its programs and operations.

The inquiry follows reports that HUD has been exploring the use of blockchain technology to secure and verify data, as well as to create a digital identity for low-income renters. The department has also been working with private companies to develop a blockchain-based platform for managing housing assistance payments.

Waters' letter asks HUD to provide information on the department's plans for implementing blockchain and cryptocurrency technology, as well as any agreements or contracts it has entered into with private companies to develop these technologies.

The letter also requests information on the potential benefits and risks of using blockchain and cryptocurrency technology in HUD's programs and operations, as well as any steps the department is taking to ensure the security and integrity of these technologies.

The investigation is part of a broader examination of the use of blockchain and cryptocurrency technology by federal agencies, which was launched by Waters in 2018. The subcommittee has also been investigating the use of these technologies by other federal agencies, including the Department of Defense and the Department of Veterans Affairs.

The use of blockchain and cryptocurrency technology by federal agencies has raised concerns about the potential for government data to be compromised or misused. It has also raised questions about the potential for these technologies to be used to facilitate fraudulent activities, such as identity theft or money laundering.

Waters has been a vocal critic of the use of blockchain and cryptocurrency technology by federal agencies, and has called for greater transparency and oversight in the development and implementation of these technologies.

In a statement, Waters said that she is concerned about the potential risks and benefits of using blockchain and cryptocurrency technology in HUD's programs and operations, and that she is seeking more information to ensure that the department is taking the necessary steps to protect taxpayer dollars and ensure the security and integrity of these technologies.

The investigation is ongoing, and HUD has until March 14 to respond to Waters' letter.