Regulator Directs Fannie Mae and Freddie Mac to Account for Cryptocurrency Holdings in Mortgage Loan Evaluations
By Hannah Lang – June 25, 2025
In a significant move reflecting the growing integration of digital assets into mainstream finance, the Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to begin considering cryptocurrency holdings as part of the asset assessments used in single-family mortgage loan risk evaluations. This directive could pave the way for borrowers to leverage their cryptocurrency investments when applying for home loans.
Policy Shift Encourages Inclusion of Crypto Assets
William Pulte, the director of the FHFA, announced the order via social media on Wednesday, emphasizing that the housing finance giants should “prepare their businesses to count cryptocurrency as an asset for mortgage.” Pulte characterized the decision as aligning with former President Donald Trump’s vision of positioning the United States as the “crypto capital of the world.”
Fannie Mae and Freddie Mac, two government-sponsored enterprises that guarantee over half of the nation’s mortgages, have operated under close federal oversight since the 2008 financial crisis. Their risk assessment frameworks traditionally exclude cryptocurrencies, largely due to the digital tokens’ notorious price volatility.
Context: Cryptocurrencies and Mortgage Lending
Cryptocurrencies, such as Bitcoin—the largest by market capitalization—have experienced dramatic price swings, often influenced by market sentiment and external factors. In late February, Bitcoin saw its steepest weekly decline in two years, dropping 16% before staging a recovery.
By integrating crypto assets into mortgage underwriting, the FHFA seeks to provide a more comprehensive view of a borrower’s financial standing. Pulte’s directive notes that recognizing “additional borrower assets” like cryptocurrencies can facilitate “sustainable homeownership to creditworthy borrowers.”
However, the order does not specify which cryptocurrencies should be counted or outline standardized valuation procedures, leaving the operational details to the two enterprises to resolve.
A Regulatory Environment Favoring Cryptocurrency
This policy adjustment comes amid a broader regulatory shift under former President Trump, who pursued reforms to foster a crypto-friendly environment. His administration appointed regulators amenable to innovative digital asset policies and engaged directly with industry leaders. The cryptocurrency market responded favorably, with Bitcoin reaching historic highs earlier this year.
The FHFA’s move signals a milestone in recognizing digital currencies as legitimate financial assets within a traditionally conservative sector. Its adoption by Fannie Mae and Freddie Mac could impact how lenders assess borrower qualifications, potentially widening access to mortgage credit for individuals with significant cryptocurrency holdings.
Looking Forward
Industry observers will be closely watching how Fannie Mae and Freddie Mac implement this directive concerning standards for asset verification, valuation, and risk management linked to cryptocurrencies. The evolving approach may also influence other lenders and regulatory bodies as digital assets further permeate the financial system.
Reporting by Hannah Lang in New York; editing by Franklin Paul