Federal Housing Finance Agency (FHFA) Director Bill Pulte announced on X (formerly Twitter) this afternoon that the GSEs—mortgage giants Fannie Mae and Freddie Mac—will soon begin considering cryptocurrency as an asset for single-family loans.
Posting a screenshot of his official directive, Pulte wrote that “after significant studying,” the choice was made “to count cryptocurrency as an asset for a mortgage.”
“Will be one of the best things I do in office,” Pulte wrote in a follow-up post.
Cryptocurrency, digital assets that are usually traded through decentralized networks, are usually not backed by governments or banks. Proponents of the technology tout its decentralized nature and potential to create efficiencies in transactions, while critics highlight a lack of regulation or inherent value as leading to scams and volatility.
For crypto to be considered by Fannie and Freddie in loans, it must be stored on a “U.S.-regulated centralized exchange subject to all applicable laws,” according to the order.
In the order, Pulte said that the FHFA “has now determined that the consideration of additional borrower assets in the Enterprises’ single-family mortgage loan risk assessment may enable the Enterprises to assess the full spectrum of asset information available for reserves to facilitate sustainable homeownership to creditworthy borrowers.”
The order is effective immediately, and “should be implemented as soon as reasonably practical.” Crypto does not need to be converted to dollars to be considered as an asset, according to the order, a change from previous guidance.
How the consideration of crypto assets by Fannie and Freddie will affect housing markets is unclear. A 2024 study by Pew Research found that 17% of adults had ever owned or traded cryptocurrency, with a slightly higher percentage of the upper-income population holding or trading assets.
The National Association of REALTORS® (NAR) wrote optimistically about the potential of crypto tech back in 2023. But it also warned of the risks, noting that crypto “could depreciate in value between the contract and settlement dates” during a home transaction.
Specifically, NAR urged listing agents to request proof of cash funds to demonstrate that buyers “could complete the purchase without cryptocurrency if necessary.”
Crypto coins are widely known for their volatility, with values fluctuating massively in hours or even minutes, and new coins created regularly with little oversight or regulation. The same Pew Research study found that 63% of Americans have “little to no confidence” that cryptocurrencies are currently reliable and safe.
President Donald Trump, however, has made crypto a focus of his second term, ordering the creation of a “strategic reserve” of Bitcoin (the original crypto coin) and launching his own coin earning rebukes from government ethics advocates, who pointed out that pro-crypto policies could financially benefit Trump personally.
Pulte, on Twitter, thanked Trump for “making the USA the crypto capital of the world!”
“Additionally, each Enterprise is directed to consider additional risk mitigants per their own assessment, including adjustments for market volatility and ensuring sufficient risk-based adjustments to the share of reserves comprised of cryptocurrency,” the order reads.
Both Fannie and Freddie are directed to “prepare a proposal” for how they will consider crypto, according to the order.
This is a developing story. Stay tuned for updates.