FHFA Directs Fannie Mae Freddie Mac to Consider Crypto for Mortgages

The Federal Housing Finance Agency (FHFA) has issued a directive instructing Fannie Mae and Freddie Mac to develop proposals for including cryptocurrency holdings in single-family mortgage risk assessments. This move marks a significant shift in how borrower reserves are evaluated, potentially allowing crypto assets to be considered for loan approvals without the need for conversion into U.S. dollars. The directive, issued by FHFA director William J. Pulte on June 25, 2025, requires that only holdings verifiable on regulated U.S. exchanges will be considered. Each institution must submit board-approved proposals before implementation.

The directive emphasizes the need for extra protections to ensure sound underwriting practices and to account for market volatility. However, critics have noted that the measure does not include self-custodied assets, which could exclude crypto-native users who prioritize decentralization from participating. Concerns have also been raised about potential conflicts of interest due to Pulte’s family’s cryptocurrency ties. As of January 2025, his spouse reportedly owned between $500,000 and $1 million in Bitcoin (BTC) and Solana (SOL), although there are no accusations of misconduct.

This development is part of a broader trend in the U.S. financial system where digital assets are increasingly being accepted as legitimate collateral. In June, a major traditional bank began accepting spot Bitcoin exchange-traded funds as loan collateral, marking a significant policy shift. Additionally, a federally chartered cryptocurrency bank offers crypto-backed loans through its collaboration with a lending institution, accepting Solana, Ethereum (ETH), and Bitcoin as collateral. A tokenized money market fund is now accepted as collateral for institutional trading on exchanges.

These advancements indicate that traditional finance is becoming more comfortable with using digital assets as collateral. With the adoption of the FHFA’s crypto directive, crypto-backed mortgages may become a standard in U.S. housing finance, providing holders of digital assets with greater financial inclusion. The directive aligns with the vision to position the United States as a global leader in cryptocurrency, potentially transforming the landscape of mortgage lending and financial services.

This shift in policy may redefine mortgage collateral standards by incorporating cryptocurrency. It could lead to increased engagement with digital assets as accepted financial tools. The Federal Housing Finance Agency has set a new precedent with Bitcoin potentially becoming eligible for mortgage collateral. Led by Bill Pulte, the agency aims to align with evolving financial technologies. Fannie Mae and Freddie Mac have been directed to incorporate cryptocurrency asset classes in purchase considerations, potentially revisiting national underwriting standards. This development could influence institutional involvement and retail adoption in the real estate market. The policy promises broader financial inclusion and diversified asset utility.

The new mandate may impact the broader housing market by integrating digital assets with traditional finance. It could stimulate the use of centralized exchanges for regulated custody services. Regulatory adjustments may mandate crypto holdings through U.S.-regulated platforms, aligning with compliance requirements. The order underscores the potential for increased Bitcoin and Ethereum utility, especially with prior restrictions on crypto-backed loans lifted. This situation could encourage further advancement in the cryptocurrency financial landscape. Improved participation could result in notable financial and regulatory evolution.