In June 2025, the U.S. Federal Housing Finance Agency (FHFA) issued new guidance that may reshape mortgage lending. The agency formally instructed Fannie Mae and Freddie Mac to evaluate whether borrowers’ crypto holdings can be used in single-family mortgage underwriting. This move reflects the federal government’s evolving stance on digital assets and their role in mainstream finance. As institutional crypto adoption rises, this decision brings new financial options for tech-savvy borrowers.
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 (@pulte) June 25, 2025
SO ORDERED pic.twitter.com/Tg9ReJQXC3
Background: Who Are Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs). Together, they guarantee nearly 70% of the U.S. mortgage market. These institutions purchase mortgages from lenders, package them into mortgage-backed securities, and sell them to investors. Because of their role in housing finance, any policy change affecting these entities has major ripple effects. FHFA, which oversees both, guides how they assess borrower creditworthiness and risk exposure.
The New Directive: What Did FHFA Order?
On June 25, 2025, FHFA Director William Pulte announced the directive during a scheduled policy briefing. He emphasized the need for more modern risk evaluation methods that reflect evolving asset classes. The agency told Fannie Mae and Freddie Mac to develop proposals for how crypto holdings could be considered in mortgage applications. These proposals must be reviewed by each GSE’s board and submitted to FHFA for approval “as soon as reasonably practical.”
The directive specifically limits eligible crypto holdings to those stored on U.S.-regulated centralized exchanges. That restriction ensures compliance with Know-Your-Customer (KYC) and anti-money laundering (AML) requirements. Self-custodied crypto, such as assets held in private wallets, remains excluded from consideration.
What This Means for Borrowers
For mortgage applicants, this directive could open new paths to loan eligibility. Traditionally, lenders evaluate cash, stocks, bonds, and retirement savings. Crypto was excluded due to volatility, lack of regulatory clarity, and valuation challenges. However, under this guidance, borrowers may include verified crypto assets in their financial profile.
This change could benefit young, tech-oriented homebuyers who hold large portions of wealth in crypto. For instance, someone with $50,000 in stablecoins on Coinbase may now qualify for better loan terms. However, this doesn’t guarantee approval—assets will likely be risk-weighted or discounted to account for market fluctuations.
Risk and Regulation: Addressing Volatility Concerns
Critics argue that including crypto in underwriting increases systemic risk. Bitcoin and Ethereum, while established, can experience double-digit swings within weeks. FHFA has addressed this by emphasizing regulatory oversight and exchange-based custody. Assets must be fully documented, verifiable, and compliant with U.S. law.
It is likely that GSEs will apply conservative valuation methods. For example, a borrower holding $20,000 in crypto may only get credit for $10,000 in underwriting. These “haircuts” already exist for other asset types like restricted stock or small-cap equities.
Policy Context: Crypto and Housing Under Trump Administration
This directive follows a broader policy realignment under the current administration. In May 2025, President Trump announced that the U.S. would retain government guarantees for Fannie Mae and Freddie Mac but also embrace fintech innovation. By including crypto in housing finance discussions, the administration signals its interest in merging traditional finance with digital asset frameworks.
This initiative mirrors other moves in 2025, such as FDIC research into tokenized bank reserves and Treasury reviews of digital dollar risks. Combined, these steps build infrastructure for crypto’s gradual inclusion in public financial policy.
Implementation Timeline and Industry Response
There is no exact deadline for proposal submissions. However, language in the directive suggests urgency. Once proposals are submitted and approved, FHFA will determine pilot programs or test phases. Mortgage lenders and fintechs will closely monitor these developments to build new crypto-friendly loan products.
Several banking groups, including the Mortgage Bankers Association, have called for transparency in how crypto valuations will be handled. Meanwhile, large exchanges like Coinbase and Kraken may push to standardize reporting formats for crypto balances, similar to tax documentation.
A Measured Step Toward Crypto-Integrated Lending
By directing Fannie Mae and Freddie Mac to study crypto asset integration, FHFA acknowledges the growing role of digital finance. The move does not guarantee full acceptance of crypto in mortgage underwriting, but it initiates an important dialogue. Borrowers with digital assets may gain new flexibility in presenting their financial health. However, risk controls, regulatory oversight, and valuation methods will play critical roles in shaping how this policy evolves.
The long-term outcome will depend on the proposals from the GSEs and the market’s ability to integrate crypto into standardized, verifiable financial reporting. While this step is early and cautious, it may become a template for how digital assets are handled in broader credit markets moving forward.
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