FHFA Mandates Fannie Mae & Freddie Mac to Accept Crypto for Mortgages—Brace for the Revolution

Regulators just dropped a bombshell on the mortgage industry—and crypto hodlers are popping champagne.

The Federal Housing Finance Agency (FHFA) ordered government-backed mortgage giants Fannie Mae and Freddie Mac to start evaluating cryptocurrency holdings as valid assets in loan applications. No more liquidating your Bitcoin stack to prove you can afford a down payment.

The new rules:

- Crypto must be held in regulated exchanges or custodians (sorry, cold storage maximalists).

- Volatility safeguards required—likely haircuts on asset values during price swings.

- Full anti-money laundering checks, because nothing says 'legitimacy' like replicating traditional finance's compliance theater.

Why this matters:

This isn’t just about letting crypto bros flex their Ledger wallets. It’s a backdoor validation of digital assets as collateral—something banks still resist despite holding bags of depreciating commercial real estate.

The cynical take:

Watch Wall Street suddenly 'discover' crypto's value now that they can package mortgage-backed securities with a side of Bitcoin futures. Just don’t expect them to HODL through the next dip.

FHFA’s move aligns with Trump administration’s aspirations

The FHFA’s “Order Issuing Directive to Consider cryptocurrency as an Asset in Risk Assessments” directs the mortgage companies to come up with a proposal for using cryptocurrency for reserves in “single-family home loans.”

According to a public statement posted on the X platform, the FHFA framed the decision as a move towards innovation as well as aligning with the current TRUMP administration’s ambitions of making the US the global capital for digital assets.

“After significant studying and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.”

Pulte.

The order also specifies that only cryptocurrencies that can be “evidenced and stored on a US-regulated centralized exchange subject to all applicable laws” will be considered.

“Additionally, each Enterprise is directed to consider additional risk mitigants per their own assessment, including adjustments for market volatility ensuring sufficient risk-based adjustments to the share of reserves comprised of cryptocurrency,” reads part of the formal order.

Crypto enthusiasts welcome FHFA’s order

The directive comes at a pivotal period for the US housing market. The housing market has witnessed a decline in mortgage originations on the backdrop of affordability problems as well as rising interest rates.

The policy shift comes after the repeal of the Securities and Exchange Commission’s Staff Accounting Bulletin 121 earlier this year, which previously placed barriers for banks to hold crypto assets on their balance sheets.

Now, supporters of the new policy, especially crypto enthusiasts, argue that this will open up home ownership to a new class of buyers who have amassed wealth in digital assets.

“Big MOVE for crypto legitimacy—if digital assets become mortgage-eligible, it could unlock home loans for a new class of buyers and accelerate crypto’s integration with TradFi,” wrote Alva on X platform.

“This could reshape how financial institutions value digital wealth, but execution details will drive the real impact.”

Alva.

They have also argued that the transparent nature of blockchain technology could offer a clear “paper trail” for lenders.

While the order has been viewed as a major step, Fannie Mae and Freddie Mac have been directed to submit comprehensive proposals to their board of directors for approval before submitting to the FHFA for review. This should be done before implementing the changes.

“The order is effective immediately and should be implemented as soon as reasonably practical,” said FHFA.

Since taking leadership of the FHFA in March this year following his appointment by President Trump, Pulte’s leadership is signaling a more crypto-friendly approach for the housing finance regulator. FHFA oversees over $8.5 trillion in mortgage funding.

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