Mortgage Market Shake-Up: Crypto Gets the Government Green Light
The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to consider adding cryptocurrency holdings into mortgage applications, a policy that could forever change the United States housing market.
Announced on June 25, 2025, by FHFA Director William Pulte, the directive supports President Donald Trump’s goal to make the United States the “crypto capital of the world.”
Crypto Holdings Now Key to Homeownership
The FHFA’s “Order Issuing Directive to Consider Cryptocurrency as an Asset for Single-Family Loans Delivered to Fannie Mae and Freddie Mac” mandates that the government-sponsored companies create proposals to allow lenders to use crypto assets, such as Bitcoin and Ethereum, in making mortgage applications.
Borrowers were previously required to convert crypto to U.S. dollars, often incurring tax liabilities. The new policy now permits direct use of crypto held on U.S.-regulated centralized exchanges that are compliant with federal laws.
The directive could increase homeownership opportunities, especially for younger investors with high crypto portfolios but little traditional savings, in line with reports that a significant number of Americans hold cryptocurrencies.
The policy could possibly increase housing demand as well, but the FHFA requires lenders to adopt risk-based adjustments to address crypto’s volatility, ensuring responsible underwriting.
U.S. Government Backs Digital Assets for Mortgages
The directive represents a turning point, being the first United States government recognition and acceptance of crypto as collateral for a mortgage.
Propy, a blockchain retail company, described the directive as a “huge step forward for crypto adoption in real estate.” The policy is an addition to other crypto-friendly regulatory reforms, such as the SEC reversal of SAB 121, which eased bank custody of digital assets.
Fannie Mae and Freddie Mac, which back roughly half of the $12 trillion U.S. mortgage market, must now develop processes to assess crypto holdings. With the need for collateralization or stability thresholds to manage volatility risks.
The FHFA, overseeing nearly $6 trillion of mortgage funding through these firms, requires strong risk management, as stated in the directive.
Fannie Mae and Freddie Mac Tackle Crypto Challenges
As of June 26, 2025, Fannie Mae and Freddie Mac will put forward proposals to implement the FHFA’s directive, with no set deadline for completion.
Only cryptocurrencies listed on regulated exchanges in the United States will be included, with other risk mitigation plans likely to be included.
The FHFA’s regulation of $6 trillion in mortgage capital backs the policy’s significance, connecting digital and traditional finance. By recognizing cryptocurrencies as a legitimate asset, the directive could change homeownership access for Americans, although lenders face challenges in valuing volatile holdings.
