Cryptocurrencies may soon help buy homes: FHFA orders Fannie Mae and Freddie Mac to study crypto-backed mortgages
By ramontomeydw // 2025-06-27
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  • The FHFA has directed Fannie Mae and Freddie Mac to draft a proposal allowing cryptocurrency holdings to be considered in mortgage risk assessments, aiming to expand loan accessibility amid a housing market slump.
  • High interest rates, low mortgage applications, housing shortages and generational stagnation (e.g., seniors delaying downsizing) have worsened affordability, leaving many young adults unable to buy homes.
  • Previously, SEC rules barred banks from treating crypto as collateral. But after Trump repealed restrictions, niche lenders began offering Bitcoin-backed mortgages – albeit primarily to wealthy investors. FHFA approval could mainstream this practice.
  • Proponents argue crypto's liquidity and transparency make it viable collateral, while critics warn price volatility could destabilize loan risk models and trigger margin calls.
  • If implemented, the policy could help millions of crypto-owning Americans qualify for mortgages, bridging the home ownership gap despite regulatory and valuation challenges.
In a move that could reshape the American housing market, Federal Housing Finance Agency (FHFA) Director Bill Pulte has ordered Fannie Mae and Freddie Mac to prepare a proposal allowing cryptocurrency holdings to be counted as assets in mortgage risk assessments. The directive announced on X Tuesday, June 25, aims to expand borrowing options amid a historic slump in mortgage applications – a symptom of soaring interest rates and persistent housing shortages. Pulte's decision could open doors for millions of Americans struggling to qualify for home loans while holding digital assets. It also aligns with President Donald Trump's push to make the U.S. the global leader in crypto adoption. The U.S. housing market has faced unprecedented challenges in recent years. Since 2022, mortgage rates have surged from historic lows, pricing many first-time buyers out of the market. Refinancing applications have plummeted, while investor purchases and generational housing stagnation – with older Americans delaying downsizing – have squeezed supply. This has resulted in a record share of young adults now living with their parents or remaining trapped in long-term renting cycles. (Related: Foreclosure wave hits U.S. as cost-of-living crisis squeezes homeowners.) Pulte, who has publicly criticized Federal Reserve Chair Jerome Powell over aggressive rate hikes, sees crypto integration as a potential lifeline. His agency oversees nearly $8 trillion in mortgage-backed securities through Fannie Mae (formally the Federal National Mortgage Association) and Freddie Mac (formally the Federal Home Loan Mortgage Corporation), meaning even modest crypto-acceptance policies could have far-reaching effects.

How crypto could reshape mortgage markets

The FHFA's decision comes at a pivotal moment for both housing and cryptocurrency markets. Until January this year, banks were largely barred from offering crypto-backed loans due to Securities and Exchange Commission rules that classified crypto as a balance sheet liability rather than an asset. After Trump repealed the restrictions earlier this year, niche lenders like Milo and Strike began offering Bitcoin-collateralized mortgages. However, these cater mostly to high-net-worth investors. Official recognition from the FHFA could normalize crypto-backed lending through mainstream federal programs, including loans provided by the Federal Housing Administration, Department of Veterans' Affairs and the U.S. Department of Agriculture. Bitcoin analysts argue its liquidity and transparent blockchain record make it ideal collateral, while skeptics warn that wild price swings could destabilize loan risk models. Already, crypto adoption has quietly seeped into American households. A recent report estimates 65 million U.S. adults – roughly 20 percent of the population – own cryptocurrency. Most portfolios remain modest however, with 74 percent valued under $50,000. Meanwhile, fintech firms report growing demand from lower-income borrowers, using crypto profits for mortgage payments. Industry leaders like Blockware Solutions' Mitchell Askew call Bitcoin "perfect collateral" for home loans. Still, challenges linger. Regulators must determine how to evaluate volatile assets, protect against margin calls and standardize documentation. Pulte's directive marks an early step, not an immediate policy shift. Yet if implemented, it could bridge America's widening homeownership gap. It could turn digital wallets into real estate keys for a generation locked out of traditional financing, putting the American Dream within their reach. Visit CryptoCult.news for more similar stories. Watch John Williams explaining the mortgage strike in the U.S., where one in 10 Federal Housing Administration home buyers stop paying. This video is from the Thisisjohnwilliams channel on Brighteon.com.

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New York proposes blockchain integration in public payments. Bitcoin's evolution beyond "digital gold": Redefining monetary innovation in a shifting landscape. Uninsurable homes and plummeting property values: John Rubino warns of a 'Reverse Wealth Effect' in exclusive interview with Mike Adams and Todd Pitner. Sources include: ZeroHedge.com X.com CoinTelegraph.com Brighteon.com
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