Crypto Assets Now Recognized for US Mortgage Applications: FHFA’s Game-Changing Policy

Historic Policy Shift Opens Doors for Crypto Holders

The Federal Housing Finance Agency (FHFA) has issued a groundbreaking directive ordering Fannie Mae and Freddie Mac to develop proposals for including cryptocurrency holdings in single-family mortgage loan risk assessments. This unprecedented move, announced by FHFA Director William J. Pulte, represents the first time government-sponsored enterprises will formally recognize digital assets without requiring conversion to US dollars.

FHFA’s historic crypto recognition

The policy change affects millions of potential homebuyers who hold cryptocurrency assets, previously unable to leverage these holdings for mortgage qualification through traditional government-backed channels.

What This Means for Crypto-Holding Homebuyers

Under the new directive, borrowers with cryptocurrency portfolios stored on “U.S.-regulated centralized exchanges subject to all applicable laws” can now potentially count these assets toward their mortgage applications. This eliminates the previous requirement to liquidate crypto holdings and convert them to dollars—a process that often triggered significant capital gains tax liabilities.

Growing crypto mortgage market

Key implications include:

• Tax Efficiency: Borrowers avoid capital gains taxes from crypto liquidation
• Portfolio Preservation: Maintain exposure to potential crypto appreciation
• Enhanced Qualification: Crypto assets now count toward borrower reserves and creditworthiness

Regulatory Framework and Requirements

Director Pulte’s directive establishes specific parameters for cryptocurrency consideration. Only digital assets that meet these criteria will qualify:

• Must be stored on US-regulated centralized exchanges
• Subject to all applicable federal and state laws
• No conversion to USD required for assessment purposes
• Limited to single-family mortgage loan evaluations initially

FHFA oversees mortgage giants

This measured approach reflects the agency’s commitment to maintaining lending standards while embracing financial innovation.

Market Context and Existing Infrastructure

The crypto-backed mortgage market, while niche, has shown significant growth. Companies like Milo Credit have already facilitated over $65 million in crypto-collateralized real estate financing, demonstrating market demand and operational feasibility.

Active crypto lending growth

Major financial institutions are similarly embracing crypto assets. JPMorgan recently announced plans to accept Bitcoin ETFs as collateral for wealth management clients, while Circle’s USDC stablecoin will become eligible collateral for futures trading through Coinbase Derivatives and Nodal Clear.

Industry Expert Perspectives

Mauricio Di Bartolomeo, co-founder of Bitcoin lending platform Ledn, notes that “many Bitcoin holders have used their digital assets as collateral to purchase real estate, without selling any of their holdings.” This trend demonstrates the practical demand driving regulatory adaptation.

Crypto lending process visualization

The policy aligns with the Trump administration’s broader goal to establish the United States as the “crypto capital of the world,” signaling continued regulatory support for digital asset integration.

Implementation Timeline and Next Steps

Fannie Mae and Freddie Mac must now prepare detailed proposals outlining how cryptocurrency assets will be evaluated, verified, and incorporated into their existing risk assessment frameworks. While no specific timeline was provided, industry observers expect initial guidelines within the coming quarters.

Evolving mortgage landscape

This development positions the US housing finance system at the forefront of digital asset adoption, potentially influencing similar policy changes in other sectors and jurisdictions worldwide.