The US Federal Housing Finance Agency (FHFA) recently announced that it will look into whether cryptocurrency holdings such as Bitcoin, Ethereum, and stablecoins can be factored into mortgage qualifying assessments.
FHFA Director William Pulte, nominated by President Trump, stated that the agency is investigating how crypto holdings may affect borrowers' financial profiles. Currently, government-sponsored corporations Fannie Mae and Freddie Mac demand that cryptocurrency assets be converted into fiat. If done, they need to be held in regulated accounts before being considered for mortgage eligibility.
The FHFA's assessment could pave the road for a more comprehensive integration of digital assets into traditional financing. In turn, this would potentially allow borrowers to list crypto directly as assets.
Until early 2025, SEC accounting laws hampered crypto-backed loans by requiring banks to regard client crypto holdings as liabilities. Following the SEC's rescinding of this recommendation, new options for crypto-backed mortgages and loans appeared. Now, the majority are being offered by specialist organizations with strict collateral requirements.
A recent US Treasury analysis showed that gains from bitcoin investments are helping lower-income households to get larger mortgages.
If the FHFA certifies cryptocurrency as a qualifying asset, traditional banks may soon offer crypto-backed mortgage products. At the end of the day, this might end up giving crypto holders greater access to housing.
