The U.S. Federal Housing Finance Agency (FHFA) has taken steps toward integrating cryptocurrency into the traditional mortgage system, opening new opportunities for borrowers.
FHFA's Initiative on Cryptocurrency
The FHFA, which oversees mortgage giants Fannie Mae and Freddie Mac, has directed them to develop a proposal to treat cryptocurrencies as an eligible asset for mortgage risk assessment. This decision is viewed as a significant moment for the institutional adoption of Bitcoin.
Conditions for Including Crypto Assets
Cryptocurrency holdings will be considered as part of a borrower's reserves, and there will be no need to convert them into U.S. dollars. For eligibility, such crypto assets must be stored on U.S.-regulated centralized exchanges like Kraken and Coinbase. Borrowers are required to provide proof of ownership and storage.
Reactions from Experts and Market Representatives
The market has reacted positively to the new initiative. Bitwise CEO Hunter Horsley commented that Bitcoin can now be counted as an asset when applying for a mortgage. FHFA Director Bill Pulte stated that this move aims to make the U.S. 'the crypto capital of the world.' Pulte, a longtime advocate of Bitcoin, emphasized that Wall Street is beginning to show active interest in the cryptocurrency.
The recent initiative by the FHFA marks a significant step towards institutional acceptance of cryptocurrencies, opening new opportunities for borrowers and confirming the increasing interest of financial institutions in Bitcoin.
