The Federal Housing Finance Agency (FHFA) under William Pulte has made a notable announcement directing Fannie Mae and Freddie Mac to consider cryptocurrency in their risk assessments for single-family loans.
FHFA Order on Cryptocurrency
FHFA has ordered each enterprise to prepare a proposal to consider cryptocurrency as an asset for reserves, without converting said cryptocurrency to U.S. dollars. This decision is driven by a desire to observe the initiatives aimed at facilitating the mainstream adoption of digital assets in the United States.
Market Impact of the Orders
The move by FHFA has attracted significant attention in the web3 space. According to Michael Saylor, co-founder and chairman at Strategy, this is a defining moment for institutional adoption of Bitcoin.
Cryptocurrency Market Reaction
Following the announcement, Bitcoin price edged 1 percent higher to about $107,748. However, the price faces short-term bearish sentiment unless it consistently closes above $110k in the coming days.
In conclusion, the actions taken by FHFA could pave the way for greater integration of cryptocurrencies into the traditional financial system, although the market remains under pressure.
