https://x.com/coinbase/status/1937934553454399773
In a landmark shift for the U.S. finance system, the Federal Housing Finance Agency (FHFA) has issued a directive allowing borrowers to use cryptocurrency as part of their federal mortgage applications without converting it to cash. The new guidance mandates that only digital assets held on U.S.-regulated, centralized exchanges will qualify. Under this directive, Fannie Mae and Freddie Mac are required to design safeguards to account for crypto’s volatility and submit their plans to the FHFA.
This move, signed by FHFA Director William J. Pulte, signals a new era of crypto integration into traditional financial infrastructure within the United States. The directive does not require the liquidation of digital assets into U.S. dollars prior to a loan closing.
https://x.com/pulte/status/1938365676780999017
https://x.com/pulte/status/1938364538467828111
Pulte stated that the move aligns with the broader vision “to make the United States a leader in financial innovation.”
Historically, cryptocurrency has been excluded from underwriting frameworks due to its volatility, regulatory uncertainty, and the challenges in verifying reserves.
including crypto in mortgage applications
This new policy changes that landscape by formally considering cryptocurrency as an asset in single-family loan risk assessments.
“Cryptocurrency is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets,” the order states, acknowledging crypto’s growing importance in household financial portfolios. The directive restricts consideration to digital assets stored on U.S.-regulated, centralized exchanges and requires clear evidence of these assets. Fannie Mae and Freddie Mac are also tasked with developing internal adjustments to account for crypto’s market volatility to ensure that any risk-weighted reserves comprising crypto do not compromise underwriting standards.
Both enterprises must submit their assessment proposals to their boards of directors for approval and then to the FHFA for final review. Fannie Mae and Freddie Mac were placed under government control in September 2008 as government-sponsored enterprises (GSEs). This decision comes at a time of increasing institutional acceptance of cryptocurrency across various sectors of banking, payments, and federal policy, marking a significant development in the ongoing integration of digital currencies into the broader financial system.