The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to explore counting cryptocurrency holdings as assets on mortgage applications, marking a shift in federal housing policy. The decision, announced Wednesday by FHFA Director William J. Pulte, reflects President Donald Trump’s broader push to make the U.S. a global leader in digital currency adoption. Under the Biden administration, Fannie Mae and Freddie Mac had barred the use of cryptocurrency-related income on mortgage applications, indicating the “high level of uncertainty” tied to the volatile market. The new directive from Pulte effectively reverses that stance, opening the door for crypto to play a larger role in the housing market.
“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 posted on X. Despite the policy shift, concerns over crypto’s notorious price swings remain central to the FHFA’s approach. Bitcoin, for example, fell 16% in February, the steepest weekly drop in two years. To mitigate such risks, Pulte’s directive calls on Fannie Mae and Freddie Mac to include safeguards in their proposals, such as adjustments for market volatility and eligibility restrictions.
Proposal guidelines and limitations
According to the document shared by Pulte, the housing giants must develop a proposal for including crypto assets as part of mortgage loan risk assessments, without converting them into U.S. dollars. Only cryptocurrencies stored and verified on U.S.-regulated centralised exchanges will be eligible. The directive did not specify which cryptocurrencies should be included, leaving that to future regulatory clarification. So far, cryptocurrency has played a minimal role in home buying. A National Association of Realtors survey found that only 1% of homebuyers between July 2023 and June 2024 used crypto for their down payments.
Fannie Mae and Freddie Mac, which back more than half of all US mortgages, remain under federal conservatorship, a status they have held since the 2008 subprime mortgage crisis. While Trump failed to privatise the entities during his first term, he recently stated he is giving “very serious consideration” to taking them public again. Meanwhile, Trump’s stance on cryptocurrency has evolved significantly. Initially skeptical during his first presidency, he has since embraced digital currencies and even launched his own branded token.
While the FHFA’s order signals a new direction, it does not guarantee implementation. Any proposal developed by Fannie Mae and Freddie Mac must still be reviewed and approved by their boards of directors and the FHFA. The directive instructs both entities to submit their plans “as soon as reasonably practical.”