The United States Federal Housing Finance Agency (FHFA) orders two government-sponsored enterprises to prepare to recognize crypto assets in mortgage qualification.
The FHFA issued the order to Fannie Mae and Freddie Mac in a letter signed by its Director, William Pulte. Notably, the FHFA ordered government-sponsored enterprises (GSEs), such as Freddie Mac and Fannie Mae, to develop systems for recognizing cryptocurrencies as legitimate assets when evaluating a borrower’s financial strength during the mortgage application process.
For context, Freddie Mac and Fannie Mae currently back the majority of U.S. mortgages. According to Pulte, both enterprises have more than $7.8 trillion in assets, positioning them among the largest companies in the United States.
Fannie Mae and Freddie Mac currently have over $7.8 Trillion in Assets
— Pulte (@pulte) June 25, 2025
Pulte ties the initiative to the current administration’s ambition to position the United States as the world’s crypto capital. The Donald Trump-led administration has continued to embrace cryptos by pushing for clearer regulation and reserves tied to these assets.
New Order
Previously, both Freddie Mac and Fannie Mae excluded crypto holdings from their mortgage risk assessment processes for mortgage loans. This sometimes prompts crypto owners to convert their assets to U.S. dollars before the loan application closes.
The FHFA indicated that considering crypto assets in the GSE’s assessments could provide a clearer picture of a borrower’s financial strength, potentially allowing more creditworthy individuals to secure mortgages.
As a result, the FHFA directed Fannie Mae and Freddie Mac to draft proposals outlining how they intend to factor cryptocurrency into their single-family mortgage loan risk assessments without requiring borrowers to convert their holdings to U.S. dollars.
Eligibility and Safeguards
Per the directive, the GSEs must consider only crypto assets stored in regulated, centralized exchanges in the United States. During these assessments, enterprises must also consider additional risk mitigants, such as volatility adjustments.
Furthermore, the FHFA ordered that the board of directors of each GSE must first approve the proposal before sending it back to the agency for further review.
Industry Stakeholders React
The broader crypto industry has celebrated the new directive, with top stakeholders like Custodia Bank CEO Caitlin Long supporting the move.
In his commentary, MicroStrategy (Strategy) executive chairman Michael Saylor said the U.S. housing system has now recognized Bitcoin as a reserve asset. He suggested that the directive serves as a defining moment for the institutional adoption of Bitcoin and its recognition as a form of mortgage collateral.
Interestingly, White House AI & Crypto Czar David Sacks also responded to the development with a flexed bicep emoji. This signals strength and approval of the FHFA’s move.
— David Sacks (@davidsacks47) June 25, 2025
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