FHFA Directs Fannie Mae and Freddie Mac to Explore Crypto as Mortgage Asset

In a move that could indicate a change in U.S. mortgage policy, the Federal Housing Finance Agency (FHFA) has issued a regulation urging Fannie Mae and Freddie Mac to consider bitcoin holdings when assessing single-family mortgage loans. This directive is aligned with US President Donald Trump’s stated approach to digital asset integration.

FHFA Director William J. Pulte shared the update in a post on X: “After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.”

According to the official directive, the goal is to enable the Enterprises to assess a broader range of borrower reserves, without requiring the conversion of cryptocurrency to US dollars prior to loan closing. The order states that only cryptocurrencies stored and authenticated on centralized exchanges regulated within the United States will be eligible for consideration.

The directive states that Fannie Mae and Freddie Mac should explore ways to incorporate cryptocurrency assets into mortgage credit assessments, while ensuring that associated financial risks are effectively addressed.

The FHFA also directed both Enterprises to include appropriate risk mitigants in their proposals such as adjustments for market volatility and reserve adequacy. Before any suggested modifications may be implemented, they have to get it approved by their individual boards and go through a formal FHFA review. The directive is effective immediately and asks the Enterprises to submit proposals as soon as reasonably practical.

Fannie Mae and Freddie Mac were placed under the conservatorship of the Federal Housing Finance Agency (FHFA) in 2008 during the financial crisis, after suffering significant financial losses. Since then, they have remained under federal oversight and continue to support a large portion of mortgage lending within the US housing market.

While the use of cryptocurrency in mortgage applications remains limited, overall crypto ownership in the US is becoming more common. As digital assets gain traction, US lawmakers and regulators are gradually implementing clearer laws and frameworks.