Mortgage Giants Could Soon Recognize Crypto as Eligible Assets
A major change may be in motion for U.S. homebuyers: the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to explore counting cryptocurrency holdings—specifically those on U.S.-regulated exchanges—as qualifying assets in mortgage applications. This initiative aims to allow crypto-rich borrowers to avoid liquidating holdings and triggering tax events.
What’s Changing?
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On June 25, 2025, FHFA Director William Pulte announced via social media that Fannie and Freddie must draft proposals so crypto assets can be considered reserve assets, without mandatory conversion to U.S. dollars.
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The policy would permit only verifiable holdings on U.S.-based centralized exchanges, excluding decentralized wallets or peer-to-peer accounts.
Why It Matters
This development represents a shift toward acknowledging digital assets in home financing:
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Borrowers with crypto holdings could now qualify for mortgages without cashing out assets.
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Lenders could treat crypto similarly to stocks or bonds in asset evaluations.
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This aligns with calls to modernize underwriting and reflect evolving investor portfolios.
Risks and Regulatory Concerns
Despite the potential, the move isn’t without controversy:
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Volatility is a key concern. Crypto prices can swing wildly within hours, making stable valuation difficult.
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Democratic lawmakers, including Sens. Warren, Sanders, Merkley, and Hirono, have raised alarms about market stability, asking for independent review before enactment.
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Critics also warn of cyber risks and transparency issues around asset ownership and ledger verification.
How Crypto-Backed Mortgages Work (Proposed)
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Crypto holdings must be held on regulated U.S. exchanges.
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Borrowers don’t need to convert cryptocurrency into U.S. dollars.
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FHFA proposals may cap the percentage of available reserves that can be crypto, and require risk buffers or valuation discounts to offset price swings.
Impact on Buyers and Lenders
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Crypto-heavy buyers, especially younger or international investors, could access mortgages using their digital wealth directly.
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Sellers and agents may increasingly market listings as crypto-friendly, especially in crypto-forward markets like South Florida or Miami.
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Lenders and underwriting platforms will soon face new requirements for verifying crypto holdings and managing volatility risk.