Coin WorldSaturday, Jun 28, 2025 11:47 pm ET

1min read

The Federal Housing Finance Agency (FHFA) has proposed a significant policy shift that could legitimize the use of Bitcoin and other cryptocurrencies in mortgage transactions. This move aims to incorporate cryptocurrency holdings, such as Bitcoin and Ethereum, into the mortgage qualification process, potentially opening new avenues for homebuyers who hold these digital assets. The proposal suggests that crypto assets stored on U.S.-regulated, centralized exchanges and that can be clearly verified could be considered as legitimate assets in mortgage applications. This policy change could mark a pivotal moment in the housing sector, as it would allow borrowers to qualify for mortgages without having to cash out their crypto holdings.

Cathie Wood, CEO of ARK Invest, has endorsed the FHFA’s consideration to include Bitcoin in mortgage qualifications, emphasizing potential impacts on the crypto's role in financial markets. If confirmed, this change could influence the mortgage market significantly. Bitcoin holders may refrain from liquidating their assets during mortgage processes, potentially increasing Bitcoin demand. Large federal lenders could see expanded client bases, diversifying service offerings.

This potential policy shift could boost Bitcoin's legitimacy and adoption. Analysts highlight Bitcoin's transparency and liquidity as ideal for collateral in home loans, marking a potential milestone in digital finance integration. Historically, SEC guidelines limited crypto in mortgages. The recent repeal of specific guidelines allows reevaluation of crypto for asset qualification. The FHFA proposal echoes such regulatory changes, suggesting broader financial integration of digital currencies.

Experts predict this policy could stabilize Bitcoin within traditional financial products, especially home loans, marking a new era for cryptocurrency roles in personal finance. Shifts towards Bitcoin as collateral hint at transformative impacts on both financial stability and asset management strategies. The FHFA's directive to Fannie Mae and Freddie Mac to explore this possibility further underscores the agency's commitment to institutional adoption of cryptocurrencies. By legitimizing crypto holdings as an asset in mortgage applications, the FHFA is not merely widening the lens of financial legitimacy but also potentially improving access to housing finance for a broader range of individuals. This policy shift could quietly change who qualifies for loans, as it recognizes the growing importance of digital assets in the financial landscape. The move is seen as a game-changer for U.S. crypto owners, as it could unlock new opportunities for leveraging their digital wealth in real estate transactions. The FHFA's proposal is a significant step towards the mainstream adoption of cryptocurrencies in traditional financial sectors, and it remains to be seen how this policy will be implemented and received by the housing market.