Federal Housing Agency Directs Inclusion of Cryptocurrency in Mortgage Asset Assessments

In a significant development for the U.S. home financing sector, the Federal Housing Finance Agency (FHFA) has issued a directive allowing Fannie Mae and Freddie Mac to formally recognize cryptocurrency holdings as assets during single-family mortgage loan risk evaluations.

This pivotal decision, formalized by FHFA Director William J. Pulte on Wednesday, June 25, 2025, signals a new phase in the integration of digital currencies into established financial systems, directly impacting American home lending.

The order specifically instructs both major housing finance entities to formulate proposals that incorporate digital assets, crucially, without obligating loan applicants to convert these cryptocurrencies into U.S. dollars before the loan’s finalization. Director Pulte indicated via a post on X that this initiative aligns with President Donald Trump’s broader objective of positioning the United States as a global leader in the cryptocurrency domain.

Historically, the inherent volatility, regulatory ambiguities, and challenges in verifying crypto reserves have led to their exclusion from mortgage underwriting frameworks. This new guidance, however, directly addresses and alters that stance.

The directive specifies that only digital assets held within U.S.-regulated, centralized exchanges, where their existence can be clearly substantiated, will be considered. Furthermore, it mandates that Fannie Mae and Freddie Mac develop internal mechanisms and adjustments to account for the market fluctuations of cryptocurrencies. These adjustments are vital to ensure that any risk-weighted reserves comprising digital assets do not compromise existing underwriting standards.

As part of the process, both government-sponsored enterprises (GSEs)—Fannie Mae and Freddie Mac, which came under government conservatorship in September 2008—are required to submit their detailed assessment proposals to their respective boards of directors for endorsement, followed by a final review by the FHFA.

This policy shift occurs amidst a broader trend of increasing acceptance and adoption of cryptocurrencies by institutional players across the banking, payments, and federal policy landscapes. The FHFA order itself acknowledges the growing significance of crypto, stating that “Cryptocurrency is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets,” thereby recognizing its expanding role within household financial portfolios.