FHFA Orders Fannie Mae Freddie Mac to Accept Crypto as Mortgage Asset

The Federal Housing Finance Agency (FHFA) has issued a groundbreaking directive to Fannie Mae and Freddie Mac, ordering them to treat cryptocurrency as a valid mortgage asset. This directive, effective immediately, allows cryptocurrency held on U.S.-regulated centralized exchanges to count toward borrower reserves, potentially unlocking new access to homeownership for crypto holders and reshaping U.S. mortgage finance.

In a formal directive signed on June 25, 2025, FHFA Director William J. Pulte ordered Fannie Mae and Freddie Mac to prepare proposals allowing cryptocurrency to be counted as reserves in mortgage evaluations. This marks the first time in U.S. history that digital assets will be included directly in government-backed mortgage risk assessments without requiring conversion into U.S. dollars.

The directive explicitly permits borrowers to use cryptocurrency stored on U.S.-regulated centralized exchanges as part of their reserve holdings. Historically, such assets were excluded from underwriting criteria unless first converted to fiat. Now, that barrier has been lifted—potentially widening the path to homeownership for millions of crypto-savvy Americans.

Under the directive, several key conditions have been outlined. Only crypto assets stored on U.S.-regulated centralized exchanges will qualify. The assets must be verifiable and evidenced, complying with applicable federal laws. Enterprises must incorporate market volatility adjustments and risk-based weighting in assessing reserves. Changes must be reviewed and approved by each Enterprise’s Board of Directors before submission to the FHFA.

This directive allows crypto to be considered without requiring borrowers to liquidate their holdings. For long-time holders of Bitcoin, Ethereum, and other major cryptocurrencies, this offers a way to maintain exposure to their assets while also using them to qualify for a mortgage.

Director William Pulte announced the move in a post, explicitly tying it to Donald Trump’s vision of making the U.S. the “crypto capital of the world.” The timing of this policy shift—coming just months before the 2025 election cycle—signals a deepening political will to integrate crypto into mainstream financial systems.

This change could open the door to new borrowers who were previously excluded from homeownership due to traditional banking limitations. Many in the crypto space are “asset-rich but fiat-poor”—holding significant digital assets but lacking large U.S. dollar reserves. By counting crypto, Fannie Mae and Freddie Mac could underwrite a broader, more modern borrower base.

It also sends a clear signal to private lenders and fintech platforms: the gate has opened. Crypto as collateral is no longer just for niche lenders or experimental products. It’s entering the U.S. housing finance core—through two of the most systemically important institutions in the market.

While the news drew praise from crypto advocates and market participants, it also sparked debate. Michael Saylor, Executive Chairman of MicroStrategy and a vocal Bitcoin advocate, hailed the decision, stating that Bitcoin has been recognized as a reserve asset by the U.S. housing system. Saylor also offered to share MicroStrategy’s proprietary BTC-based credit models with the FHFA to help them evaluate volatility, loan duration, and other risk factors.

However, not all of the reactions were positive. Opponents of the move said the directive doesn’t apply to crypto stored in self-custody wallets, but only to crypto held on centralized exchanges that are regulated in the U.S.—prompting fears of surveillance, control and erosion of the decentralized nature of crypto. Crypto-native users pushed back on the fact that the exclusion of self-custody wallets defeats the entire purpose of blockchain ownership standards and might lead users to using custodial platforms that have lost their trust.

While the concept of crypto-backed mortgages has existed in niche corners of fintech—through services like Milo, Ledn, and others—this directive propels the idea into the mainstream. It legitimizes the practice and adds a federal framework around compliance, documentation, and risk evaluation. In fact, companies like Ledn and Figure have already originated millions of dollars in crypto-backed mortgages, where borrowers use their Bitcoin or Ether as collateral for real estate purchases. This federal move might now compel larger banks and mortgage originators to develop similar offerings with government support.