Finally, another factor that could affect subprime delinquencies is the substantial payment increase often experienced at the first interest rate reset. For the most common type of subprime variable-rate loan, the so-called "2/28" loan, this reset occurs after two years, before which payments are typically based on a fixed below-market rate.
Moreover, while crypto-assets are hyped as “decentralized,” there has been an emergence of new, quite centralized intermediaries that are either not subject to or not compliant with appropriate regulation and supervision, which has perpetuated harm to consumers. Complicating matters further, these entities often seek out jurisdictions with loose or less developed legal and regulatory frameworks for financial activities.