The Federal Housing Finance Agency (FHFA) has made a surprising move, announcing that cryptocurrency can be recognized as an asset when applying for mortgages.
What This Means for Mortgages
Now cryptocurrency owners, such as Bitcoin, Ethereum, or XRP, can include their digital assets as part of their assets when applying for a mortgage backed by Fannie Mae or Freddie Mac.
Importance of This Decision
This decision is significant as it marks the first time U.S. government-backed mortgage firms have officially recognized crypto as a financial asset. Previously, crypto was often considered too risky for traditional financial products like home loans.
Next Steps
Private banks like JPMorgan, Bank of America, and Wells Fargo are likely to follow suit, potentially leading to new crypto-related financial products and services.
This decision represents another step towards the acceptance of cryptocurrency as a mainstream financial instrument and could significantly alter the U.S. mortgage market.
