On June 25, 2025, the FHFA issued a directive formalizing the role of digital assets in U.S. mortgage financing.
Formal Inclusion of Crypto in Mortgages
The directive signed by FHFA Director William J. Pulte allows crypto assets to be used as reserve assets in mortgage financing. This marks a significant step in recognizing cryptocurrencies as part of household financial profiles.
Conditions for Using Crypto Assets
According to the FHFA, crypto assets may be accepted as reserves only if they are stored on regulated U.S.-based exchanges and can be held without conversion to dollars. This decision aims to improve liquidity and access to mortgage financing for younger or digitally native borrowers with significant crypto holdings.
New Risks and Requirements for Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are required to develop internal risk assessment systems that account for the volatility of crypto assets. Any implementation of these new practices must be approved by the institutions' boards of directors and submitted to the FHFA for review.
The new FHFA directive reflects efforts to modernize mortgage qualification standards in line with evolving asset trends and facilitates greater integration of crypto into the financial system.
