Trump Administration Paves the Way for Cryptocurrencies as Collateral in Mortgages: A Game-Changer for Homebuyers

• How Will Cryptocurrencies Transform the Mortgage Market?
• What's Required from Fannie Mae and Freddie Mac?
• Is Crypto Collateral a Necessary Update or Risky Experiment?
• What Does This Mean for Homebuyers?
• Frequently Asked Questions

In a bold move that could redefine the mortgage industry, the Trump administration has taken steps to allow cryptocurrencies like bitcoin to be used as collateral for home loans. On June 25, 2025, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to develop systems enabling borrowers to include their crypto holdings in mortgage applications. This groundbreaking policy signals a major shift in how digital assets are perceived by traditional financial institutions. While still in its early stages, the initiative reflects a growing recognition of cryptocurrencies as legitimate components of personal financial planning. The decision balances innovation with caution, requiring lenders to implement additional safeguards against crypto's notorious volatility and security risks.

How Will Cryptocurrencies Transform the Mortgage Market?

The mortgage industry has traditionally been wary of digital assets, with most lenders requiring borrowers to convert crypto to cash before considering it for loan qualification. The primary concern has been cryptocurrency's wild price swings - a stark contrast to the stability preferred in mortgage underwriting. However, the FHFA now believes it's time to reconsider this stance. After extensive research and in alignment with President Trump's vision to establish the U.S. as the global crypto hub, the agency is pushing for a framework that responsibly incorporates digital assets into the mortgage process.

Director William Pulte emphasized this reflects the administration's broader strategy to integrate crypto with traditional finance. "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 Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage," Pulte announced on Twitter. The approach doesn't ignore crypto's risks but seeks to account for them through enhanced credit analysis procedures that factor in price volatility and cybersecurity concerns.

Bitcoin price in June 2025 (Source: CoinMarketCap)

What's Required from Fannie Mae and Freddie Mac?

As the backbone of the U.S. mortgage market (though they don't originate loans directly), Fannie and Freddie must create new systems allowing lenders to consider crypto assets in borrowers' financial profiles. The framework requires cryptocurrencies to be held on U.S.-regulated exchanges like BTCC and establishes protocols for handling their valuation fluctuations. Lenders will need to implement safeguards such as regular portfolio re-evaluations and possibly requiring higher collateral percentages for crypto-backed loans.

The BTCC research team notes this development could significantly impact crypto adoption: "When two of the most conservative players in American finance begin accepting digital assets, it sends a powerful message to the entire financial ecosystem." However, no firm timeline exists for implementation - the agencies must develop detailed proposals subject to further review and formal approval.

Is Crypto Collateral a Necessary Update or Risky Experiment?

The mortgage industry appears divided on the policy. The Mortgage Bankers Association supports modernizing asset verification methods, arguing it's essential as more Americans hold wealth in non-traditional forms. "This is about meeting borrowers where they are," explains a spokesperson. "For younger homebuyers especially, crypto represents a growing portion of their net worth."

Critics like Amanda Fischer of Better Markets warn crypto's volatility makes it dangerous for credit decisions. "Imagine getting approved for a mortgage because your Bitcoin was worth $60,000, only to see its value halve before closing," Fischer cautions. She also highlights exchange security risks - what happens if a borrower's crypto disappears due to hacking or platform failure? These concerns will likely shape how regulators finalize the policy details.

What Does This Mean for Homebuyers?

If implemented, crypto holders could qualify for mortgages without liquidating their digital assets - a game-changer for those wanting to maintain long-term positions or avoid selling during market dips. The BTCC team suggests this might particularly benefit tech professionals and younger investors whose portfolios lean heavily toward crypto. However, borrowers should expect more stringent requirements than traditional applicants, including possibly higher down payments or interest rates to offset lenders' added risk.

The coming months will be critical as Fannie and Freddie work out operational details. Lenders must upgrade their systems, and regulators will closely monitor how the new rules perform in practice. Success could prompt one of finance's most conservative sectors to fundamentally rethink its relationship with digital assets.

Frequently Asked Questions

When will crypto become acceptable for mortgage collateral?

As of June 2025, there's no definitive timeline. Fannie Mae and Freddie Mac must first develop detailed proposals, which will then undergo review and require formal approval before implementation.

Which cryptocurrencies will qualify?

The policy doesn't yet specify, but likely candidates include major assets like Bitcoin and ethereum that trade on regulated U.S. exchanges such as BTCC, Coinbase, and Kraken.

How will lenders handle crypto's price volatility?

Expect mechanisms like frequent portfolio revaluations, higher collateral requirements (e.g., $150,000 in crypto to secure a $100,000 loan), or possibly crypto-backed loan products with adjustable terms.

What happens if my crypto loses value after getting mortgage approval?

Details aren't final, but borrowers might need to add more collateral or face loan restructuring - similar to margin calls in securities-backed lending.

Will this make mortgages more accessible to crypto investors?

Potentially yes, by allowing them to leverage crypto holdings without triggering taxable events from sales. However, qualification standards may be stricter than traditional mortgages.