FHFA Mandates Fannie Mae, Freddie Mac to Accept Crypto as Mortgage Assets

Federal Housing Finance Agency (FHFA) Director William J. Pulte has mandated that Fannie Mae and Freddie Mac begin preparations to include cryptocurrency holdings as valid assets in mortgage underwriting processes. This directive, announced on June 25, 2025, signals a potential paradigm shift allowing borrowers to leverage digital currencies like Bitcoin and Ethereum when qualifying for home loans. Pulte emphasized the alignment of this initiative with Donald Trump’s vision to position the United States as the global leader in cryptocurrency adoption. He stated on social media that the directive aims to enable crypto holders to purchase homes on equal footing with traditional asset owners, reflecting a broader effort to modernize and upgrade the housing finance system.

The FHFA’s instruction requires Fannie Mae and Freddie Mac to develop internal risk assessment frameworks that account for the inherent volatility and market fluctuations of cryptocurrencies. Importantly, only crypto assets held on U.S.-based, regulated exchanges and verifiable through documentation will be considered eligible for mortgage qualification purposes. While this does not yet permit the use of cryptocurrencies as direct collateral, it marks the first official recognition of digital assets within federally backed mortgage risk evaluations. This development follows regulatory easing earlier in the year, including the SEC’s rollback of accounting guidance that previously restricted crypto-backed financial products. The FHFA’s directive could significantly broaden access to homeownership for crypto-wealthy individuals who were previously excluded from conventional mortgage lending due to the unrecognized status of their digital assets.

Director Pulte spearheads this initiative, leveraging his background with cryptocurrency such as Bitcoin and Solana. Pulte confirmed that only holdings on regulated U.S. exchanges will be considered, aiming to ensure secure assessments. This move intends to extend mortgage access, also limiting accepted tokens to mitigate risks. The policy is expected to make mortgage loans more accessible, impacting Fannie Mae and Freddie Mac. By redefining borrower reserves, cryptocurrency can contribute without U.S. dollar conversion. This regulatory change addresses market dynamics, aiming to stabilize potential volatility and drive increased custody activity on regulated platforms. While this is a novel approach in federal housing policy, it is not devoid of precedents in private lending sectors involving crypto. The FHFA’s decision could lead to regulatory paradigms globally, suggesting an increased incorporation of digital assets in traditional financial services.

This directive comes at a pivotal period for the U.S. housing market. The housing market has witnessed a decline in mortgage originations on the backdrop of affordability problems as well as rising interest rates. The policy shift comes after the repeal of the Securities and Exchange Commission’s Staff Accounting Bulletin 121 earlier this year, which previously placed barriers for banks to hold crypto assets on their balance sheets. Now, supporters of the new policy, especially crypto enthusiasts, argue that this will open up home ownership to a new class of buyers who have amassed wealth in digital assets. They have also argued that the transparent nature of blockchain technology could offer a clear “paper trail” for lenders. While the order has been viewed as a major step, Fannie Mae and Freddie Mac have been directed to submit comprehensive proposals to their board of directors for approval before submitting to the FHFA for review. This should be done before implementing the changes. The order is effective immediately and should be implemented as soon as reasonably practical. Since taking leadership of the FHFA in March this year following his appointment by President Trump, Pulte’s leadership is signaling a more crypto-friendly approach for the housing finance regulator. FHFA oversees over $8.5 trillion in mortgage funding. The directive, signed on June 25, 2025 by FHFA Director William J. Pulte, marks the first time digital assets will play a formal role in U.S. housing finance. According to the FHFA, crypto assets may now be accepted as reserve assets—but only if they are stored on U.S.-based, regulated exchanges and can be held without conversion into dollars. The decision is aimed at improving liquidity, flexibility, and access to mortgage financing, especially for younger or digitally native borrowers with significant crypto holdings. Fannie Mae and Freddie Mac are now required to develop internal risk assessment systems that account for the volatility and market fluctuations of crypto assets. Any implementation of these new practices must be approved by the institutions’ boards of directors and submitted to the FHFA for review. This directive signals a broader institutional acceptance of crypto as part of household financial profiles and reflects the agency’s effort to modernize mortgage qualification standards in line with evolving asset trends. The immediate effect could see an increase in qualified mortgage applicants who hold substantial crypto assets. Crypto market participants are expected to pay close attention to the policy’s roll-out. The directive is part of a broader initiative to integrate cryptocurrencies into traditional financial systems, which should affect capital flows and transaction volumes. Analysts believe this move could nudge more investors and institutions towards regulated crypto exchanges. Historically, Fannie Mae and Freddie Mac have only considered cash assets held in traditional banks. Cryptocurrencies were excluded from mortgage calculations. Similar actions in other sectors have shown that regulatory acceptance can push market acceptance. Experts speculate the policy could trigger a greater institutional acceptance of cryptocurrencies, considering the scale of mortgage markets. The full consequences remain to be seen as the implementation progresses, but industry watchers are closely monitoring for signs of increased liquidity and asset flow into the U.S. housing sector.