FHFA Directs Fannie Mae Freddie Mac to Consider Crypto for Mortgages Crypto Veterans Aim to Raise $1 Billion for Diversified Public Fund Kalshi Secures $185 Million Funding Valuation Hits $2 Billion

Fannie Mae and Freddie Mac, the U.S. mortgage giants, have been directed to explore the inclusion of cryptocurrency as an asset for mortgage applications. This directive, issued by the Federal Housing Finance Agency (FHFA) director Bill Pulte, aims to reshape risk assessment in U.S. housing finance by recognizing crypto as an asset class. The policy will apply only to digital assets held on centralized crypto exchanges based in the U.S. and compliant with all applicable regulations.

A group of crypto and finance veterans are attempting to raise $1 billion for a publicly traded fund that would hold a diversified portfolio of cryptocurrencies, including BTC, ETH, and SOL. This effort is being led by M3-Brigade Acquisition V Corp., a special-purpose acquisition company that recently changed hands. Reeve Collins, a co-founder of stablecoin issuer Tether, and CC Capital, founded by former Blackstone dealmaker Chinh Chu, acquired sponsor interests in the firm in May. Former U.S. Commerce Secretary Wilbur Ross and Gabriel Abed, chair of Binance’s board of directors, are set to serve as vice chairmen of the vehicle. Jaime Leverton, the former CEO of Bitcoin miner Hut 8, will take over as chief executive. The SPAC, which is expected to be renamed, is aiming to gather funds to build a basket of digital assets—a strategy that contrasts sharply with the Bitcoin-only approach favored by companies like MicroStrategy and Japan’s Metaplanet. Advisory support is coming from Cantor Fitzgerald, though details of the deal, including the $1 billion target, remain in flux.

Prediction market platform Kalshi has secured $185 million in fresh funding, bringing its valuation to $2 billion and placing it alongside rival Polymarket in the crypto unicorn club. The federally regulated exchange, which lets users bet on real-world events under oversight from the Commodity Futures Trading Commission (CFTC), plans to use the new capital to grow its engineering team and expand its market offerings. This latest raise brings Kalshi’s total funding to $415 million. The move comes just one day after reports surfaced that Polymarket, which operates in a regulatory gray area, is raising $200 million at a $1 billion valuation. Kalshi’s latest round was led by crypto venture capital firm Paradigm, which also recently backed GTE, a decentralized exchange.

This directive from the FHFA marks a significant shift in how cryptocurrency is viewed within the traditional financial sector. By recognizing crypto as an asset class for mortgage purposes, Fannie Mae and Freddie Mac are paving the way for greater integration of digital assets into mainstream finance. This move could potentially open up new avenues for homebuyers who hold significant amounts of cryptocurrency, allowing them to leverage these assets when applying for mortgages. However, the policy's focus on centralized exchanges based in the U.S. and compliant with regulations suggests a cautious approach, ensuring that only assets meeting stringent criteria will be considered.

The effort to raise $1 billion for a publicly traded crypto fund highlights the growing interest in diversified portfolios of digital assets. Led by industry veterans, this initiative aims to provide investors with a broader exposure to the crypto market, moving away from the single-asset focus of some companies. The involvement of high-profile figures like Wilbur Ross and Gabriel Abed adds credibility to the project, while the appointment of Jaime Leverton as CEO brings expertise from the Bitcoin mining sector. The strategy of building a basket of digital assets reflects a more nuanced approach to crypto investment, recognizing the potential of various cryptocurrencies beyond Bitcoin.

Kalshi's $2 billion valuation and $185 million raise underscore the burgeoning prediction market sector within the crypto industry. As a federally regulated exchange, Kalshi operates under the oversight of the CFTC, providing a level of legitimacy and security that appeals to investors. The platform's plans to expand its engineering team and market offerings indicate a commitment to growth and innovation. The competition with Polymarket, which operates in a less regulated environment, highlights the differing approaches within the prediction market space. Kalshi's focus on compliance and regulatory oversight positions it as a more stable and reliable option for investors, potentially attracting those who prioritize security and legitimacy in their crypto investments.