FHFA Orders Fannie Mae Freddie Mac to Explore Cryptocurrency in Mortgages

U.S. Federal Housing Finance Agency (FHFA) Director Bill Pulte has issued an order directing Fannie Mae and Freddie Mac to explore the potential use of cryptocurrencies in mortgage risk assessments. This directive comes as part of a broader effort to align federal housing policy with the growing adoption of digital assets by consumers.

According to a statement from Pulte, the two government-sponsored enterprises are tasked with preparing a proposal that considers "cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessments" without the need for conversion to U.S. dollars. This move is seen as a significant step towards integrating cryptocurrencies into the mainstream financial system, particularly in the mortgage industry.

Pulte emphasized that only cryptocurrencies stored on U.S.-regulated centralized exchanges would be considered by the government agency. This stipulation aims to ensure regulatory compliance and mitigate risks associated with the volatile nature of digital assets. "After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage," Pulte stated.

Pulte further highlighted the historic significance of this decision, noting that it positions Fannie Mae and Freddie Mac at the forefront of integrating cryptocurrencies into the mortgage industry. "Today is a historic day in the cryptocurrency industry and the mortgage industry, whereby Fannie Mae and Freddie Mac are now positioned to involve Cryptocurrencies in Mortgages," he added. "Thank you President Trump for making the USA the crypto capital of the world!"

Industry experts and advocates have welcomed the FHFA's move, viewing it as a major milestone in the mainstream adoption of cryptocurrencies. Michael Saylor, the founder of Strategy, praised the decision, calling it a "defining moment for institutional BTC adoption and collateral recognition." Saylor noted that this development could set a precedent for the global banking system to follow suit.

Blockchain real estate company Propy also hailed the FHFA's consideration of cryptocurrencies, describing it as a "huge step forward for crypto adoption in real estate." Propy's official account on social media stated, "Regulators are moving. Markets are watching." This sentiment reflects the growing recognition of cryptocurrencies as a viable asset class within the real estate sector.

With over 55 million Americans owning digital assets, the integration of cryptocurrencies into the mortgage industry could unlock new opportunities for homeownership. This move by the FHFA is expected to pave the way for further innovation and adoption of digital assets in the housing market, aligning with the broader trend of increasing crypto adoption across various sectors.