The Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac on Wednesday to begin considering cryptocurrency holdings as assets in mortgage applications, marking the first time digital currencies will be formally recognized in U.S. housing finance.
FHFA Director Bill Pulte announced the directive on social media, stating the decision came "after significant studying" and aligns with President Trump's vision to make America "the crypto capital of the world." The order is effective immediately and directs the government-sponsored enterprises to implement the policy "as soon as reasonably practical."
Under the new guidelines, borrowers can list cryptocurrency stored on U.S.-regulated exchanges as part of their asset portfolio without first converting it to dollars—a departure from previous requirements.1 The directive applies specifically to single-family mortgage loans and requires both Fannie Mae and Freddie Mac to prepare proposals detailing their implementation plans.1
The order mandates that institutions "consider additional risk mitigants," including adjustments for market volatility and "sufficient risk-based adjustments to the share of reserves comprised of cryptocurrency."1 Only crypto held on exchanges "subject to all applicable laws" will be eligible for consideration.1
Bitcoin rose 2.2% to above $107,000 following Pulte's announcement, according to CoinDesk.1 The cryptocurrency's market dominance increased to 66% of total crypto market value.1
Previously, Fannie Mae and Freddie Mac required cryptocurrency to be "exchanged into U.S. dollars and held in a U.S. or state regulated financial institution" before it could count toward mortgage qualifications, CoinDesk reported.2 The new policy removes this conversion requirement.
Pulte, who assumed his role in March after Trump's nomination, disclosed holdings of $500,001 to $1 million each in bitcoin and Solana, according to The Block.3 He also holds shares in bitcoin mining firm MARA Holdings.3
"This makes it substantially easier for holders of bitcoin to purchase a house without selling their bitcoin," Strive CEO Matt Cole posted on X.1 He noted the policy means "the U.S. government is taking Bitcoin risk on its own book as the U.S. government implicitly guarantees Fannie/Freddie mortgage loans."1
The FHFA stated the decision aims to help enterprises "assess the full spectrum of asset information available for reserves to facilitate sustainable homeownership to creditworthy borrowers."2
