November 13, 2025
By Anjali Kochhar
The Federal Housing Finance Agency (FHFA) has formally directed mortgage giants Fannie Mae and Freddie Mac to begin treating cryptocurrency holdings as legitimate assets when assessing home-loan eligibility, marking a major shift in U.S. housing finance policy.
FHFA Director William Pulte announced that borrowers’ digital-asset portfolios held on U.S.-regulated exchanges may now be considered alongside traditional assets like stocks and bonds. He emphasised that the move aims to help creditworthy borrowers achieve the American dream of homeownership.
Only cryptocurrency holdings stored on U.S.-regulated centralised exchanges will qualify, and lenders must apply appropriate discounts for volatility when evaluating such assets. The directive also clarifies that borrowers will not be required to convert their crypto into U.S. dollars.
Why the shift?
The change aligns with the Trump administration’s broader efforts to modernise financial frameworks and acknowledge the growing influence of digital assets in American wealth creation. Supporters say this could help crypto investors who were previously forced to sell their holdings and pay taxes on gains to qualify for mortgages.
With mortgage rates remaining high and affordability under pressure, many potential homebuyers now hold a significant portion of their wealth in digital assets. Allowing crypto to count as reserves may open a new path to homeownership for such individuals.
Resistance and risks
Not everyone supports the move. A group of Democratic senators has begun an inquiry into the policy, citing concerns over the volatility and regulatory uncertainty surrounding cryptocurrencies. Critics argue that digital assets can lose or gain large portions of their value within days, posing potential risks to housing stability.
They also warn that the policy could expose both borrowers and lenders to financial shocks if crypto prices crash, given the limited oversight and liquidity challenges in many digital-asset markets.
What happens next?
Fannie Mae and Freddie Mac have been instructed to submit operational plans detailing how crypto assets can be safely integrated into underwriting standards. The success of these proposals will determine whether crypto-backed mortgages can become a sustainable part of the U.S. housing finance system.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
