FHFA Orders Fannie Mae Freddie Mac to Consider Crypto in Mortgage Risk Assessments

The Federal Housing Finance Agency (FHFA) has issued a directive to mortgage giants Fannie Mae and Freddie Mac, instructing them to develop proposals for including cryptocurrency holdings in single-family mortgage risk assessments. This marks a significant shift in how these government-sponsored enterprises evaluate the financial standing of potential homebuyers. Previously, digital assets had to be converted into U.S. dollars before they could be considered in mortgage risk assessments.

The new directive, issued by FHFA Director William J. Pulte, aims to align with President Trump's vision to position the United States as a global leader in cryptocurrency. The order specifies that only cryptocurrency assets that can be evidenced and stored on a U.S.-regulated centralized exchange will be considered. This requirement is designed to mitigate the risks associated with the volatility of cryptocurrencies, which are known to be more volatile than traditional stocks and bonds.

The directive also emphasizes the need for Fannie Mae and Freddie Mac to receive approval from their respective boards before submitting the proposed crypto policies to the FHFA for review. This ensures that any changes are thoroughly vetted and comply with regulatory standards. Pulte, who heads the FHFA and also chairs the boards of Fannie Mae and Freddie Mac, has significant influence over the policy decisions of these GSEs.

This announcement is part of a broader push by the Trump administration to integrate cryptocurrency into the federal government's financial framework. The consideration of cryptocurrency as an asset for mortgage risk assessments represents a new frontier for Fannie Mae and Freddie Mac. While the potential benefits of this move include increased financial flexibility for homebuyers with significant crypto holdings, the challenges lie in managing the inherent volatility and regulatory complexities of cryptocurrencies.

The GSEs will need to develop robust risk mitigation strategies to ensure the stability and security of the mortgage market. The directive called for extra protections to ensure sound underwriting practices and take market volatility into account. Critics have pointed out that the measure does not include self-custodied assets, which might prevent crypto-native users who value decentralization from participating.

Concerns have also been raised about 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, the timing has sparked questions about potential conflicts of interest.

This is not the first time crypto has been accepted as legitimate collateral in U.S. financial systems. In June, JPMorgan Chase began accepting spot Bitcoin exchange-traded funds, such as BlackRock’s iShares Bitcoin Trust, as loan collateral. Despite not being directly related to cryptocurrency, the exposure represents a big change in policy for a major traditional bank.

Federally chartered cryptocurrency bank Anchorage Digital also offers crypto-backed loans through its collaboration with Arch Lending, accepting Solana, Ethereum (ETH), and Bitcoin as collateral. At the same time, BlackRock’s tokenized money market fund, BUIDL, is now accepted as collateral for institutional trading on exchanges.

These developments show that traditional finance is becoming more comfortable 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, giving holders of digital assets access to greater financial inclusion.