FHFA Orders Fannie Mae, Freddie Mac to Integrate Cryptocurrencies into Mortgage Risk Assessment

The Federal Housing Finance Agency (FHFA) has recently issued a significant directive, instructing government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac to formally integrate cryptocurrencies into their single-family mortgage risk assessment framework. This directive, signed by the agency's director, marks a historic moment as cryptocurrencies are included in the core of the U.S. housing finance system, aligning with the strategic vision of the Trump administration to position the U.S. as the global hub for cryptocurrencies.

Under the new regulations, Fannie Mae and Freddie Mac are required to develop proposals that allow borrowers to use cryptocurrencies as proof of assets for mortgage applications without needing to convert them to dollars before loan disbursement. This move breaks the traditional financial system's exclusion of cryptocurrencies, which have long been hindered by their high volatility, regulatory uncertainty, and difficulties in verifying reserves.

The FHFA directive emphasizes that cryptocurrencies represent a new asset class that could provide households with wealth accumulation channels beyond stocks and bonds. To manage risks, the policy only allows digital assets stored in regulated centralized exchanges with complete audit trails. Both Fannie Mae and Freddie Mac are required to establish internal risk management mechanisms to set risk-weighted capital standards for cryptocurrency market volatility, ensuring that underwriting standards remain robust. The proposals are currently under review by the boards of both entities and will require FHFA approval before implementation.

Following the announcement, the cryptocurrency market showed mixed reactions. Bitcoin's price surged past 108,000 dollars the day after the directive was issued, setting a new historical high. In contrast, Ethereum and Solana experienced slight declines. Analysts attribute this to the easing of geopolitical tensions in the Middle East and the Federal Reserve's positive remarks on the maturity of stablecoins, which collectively boosted market sentiment.

The Federal Reserve Chairman indicated that the stablecoin industry has significantly integrated into the mainstream financial system, further bolstering market confidence. Concurrently, the New York Stock Exchange is pushing for the listing of a cryptocurrency-themed ETF linked to the Truth Social platform, owned by the Trump administration. If approved by the SEC within the next 90 days, this ETF could serve as a key implementation of the Trump administration's digital asset strategy.

In the legislative arena, the Senate's Digital Asset Banking Committee chair revealed that the "Cryptocurrency Rulemaking Act" is in the final stages of detailed negotiations. The chair emphasized the need for the U.S. to lead in digital asset regulation, noting that some overseas markets have already completed their regulatory frameworks.

Traditional financial institutions are accelerating their entry into the cryptocurrency sector. Digital Asset, a digital asset technology company, announced a 135 million dollar funding round, with investors including major Wall Street firms. The company's CEO stated that the funds will be used to expand its blockchain technology platform, supporting financial institutions' compliance needs for digital asset operations.

The background of FHFA director's family enterprise, Pulte Group, one of the largest homebuilders in the U.S., may have added industry synergy to the policy's advancement. Fannie Mae and Freddie Mac, which have been under government control since the 2008 financial crisis, are undergoing a functional transformation in the digital age with this reform.

Industry experts note that if cryptocurrencies are successfully integrated into the mortgage system, it could reshape household asset allocation models and potentially drive the dollar-dominated global financial system towards a multi-asset era. With coordinated efforts from policy and market sides, cryptocurrencies are evolving from speculative tools into integral components of traditional financial infrastructure.