Federal Housing Finance Agency embraces cryptocurrency for mortgage reserves

On June 25, 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to begin recognizing cryptocurrency as a permissible reserve asset in the assessment of mortgage risks. This significant policy change allows Bitcoin and specific compliant cryptocurrencies held on U.S.-regulated exchanges to be counted as part of mortgage reserves. This initiative is intended to help prospective homebuyers qualify for loans without having to liquidate their crypto assets, which often triggers capital gains taxes. George Pulte, the FHFA Director, announced the decision via social media, highlighting a commitment to positioning the U.S. as a leader in cryptocurrency use in finance. The directive aligns with broader efforts by the Trump administration to integrate digital assets into the financial mainstream. A growing body of research indicates that younger and more diverse populations hold significant amounts of digital assets, suggesting that this policy could dismantle barriers to homeownership for those demographics. As the landscape of wealth evolves to include cryptocurrencies, traditional mortgage lenders are being prompted to reevaluate their criteria and strategies. By allowing the inclusion of cryptocurrency, there is potential for broader access to home loans, particularly for individuals without significant amounts of cash savings. The guidelines specify that only cryptocurrencies stored on U.S.-regulated exchanges qualify for these mortgage assessments, which implies a narrowing of eligible assets. This is a crucial consideration as it suggests a cautious approach by regulators to mitigate risks associated with the inherent volatility of digital assets. The next steps for Fannie Mae and Freddie Mac include developing frameworks that assess crypto volatility and how it affects borrowing potential. Moreover, there are ongoing discussions about whether assets in self-custodied wallets could also be included in future considerations, as well as whether income derived from staking or mining should be considered in mortgage applications. This significant shift in policy not only represents the increasing mainstream acceptance of cryptocurrencies but also sets a precedent for how federal policies may adapt to the evolving financial landscape. The successful implementation of these guidelines could provide a pathway for millions to access the housing market while retaining their digital assets, creating new opportunities in home financing. The future remains uncertain, but the FHFA's actions are likely to catalyze changes throughout the housing finance system and redefine the intersection between digital currency and traditional banking practices.