In a significant shift for U.S. housing finance, the Federal Housing Finance Agency (FHFA) Director William Pulte has issued a directive to government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, instructing them to begin preparing to consider cryptocurrency holdings as assets for mortgage applications. This landmark decision, announced by Pulte on June 25, 2025, aligns with President Donald Trump’s broader vision of positioning the United States as the “crypto capital of the world.”

Historically, digital assets were not factored into traditional mortgage evaluations unless they were first converted into U.S. dollars. This new policy marks a reversal of previous guidance, which, during the Biden administration, explicitly stated that cryptocurrency income could not be used to qualify for a mortgage due to its high uncertainty. Pulte’s directive means that borrowers who hold cryptocurrencies could now be seen as having a better financial position to meet mortgage payments, potentially increasing their chances of loan approval without needing to liquidate their digital holdings.

The directive mandates Fannie Mae and Freddie Mac to develop proposals for how lenders should weigh these digital assets. However, it comes with specific stipulations: only cryptocurrency assets that can be “evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws” will be considered. This requirement excludes self-custodied assets, drawing criticism from some crypto enthusiasts who prioritize decentralization. Furthermore, the FHFA emphasized that Fannie and Freddie must consider additional risk mitigants, including adjustments for market volatility, and apply sufficient risk-based discounts to the portion of reserves comprised of cryptocurrency. These proposals will require approval from each enterprise’s Board of Directors and the FHFA before taking effect, with implementation expected as soon as reasonably practical.

The announcement has elicited mixed reactions. Proponents laud the move as a major step towards institutional adoption and collateral recognition for Bitcoin and other digital assets, potentially paving the way for broader integration of crypto into the U.S. mortgage system. Michael Saylor, co-founder of Strategy, even offered to share his company’s Bitcoin credit model with Pulte, which addresses loan duration, collateral, price fluctuations, and risk projections. Conversely, critics have voiced concerns about the restriction to centralized exchanges and questions have been raised regarding potential conflicts of interest, given reports of Pulte’s spouse owning significant amounts of Bitcoin and Solana as of January 2025.

This initiative by the FHFA is part of a broader trend of increasing institutional acceptance of digital assets as legitimate collateral within the U.S. financial system. Major institutions like JPMorgan Chase have already begun accepting spot Bitcoin exchange-traded funds (ETFs) as loan collateral, and federally chartered cryptocurrency banks like Anchorage Digital offer crypto-backed loans. BlackRock’s tokenized money market fund, BUIDL, is also gaining acceptance as collateral for institutional trading. While the U.S. is moving to embrace crypto in finance, other regions, like the UK, are tightening restrictions, with Barclays recently announcing a ban on crypto purchases via its credit cards due to volatility and consumer protection concerns. In the legislative sphere, Senator Cynthia Lummis remains optimistic about the potential passage of key crypto bills, such as the GENIUS and CLARITY Acts, by the end of 2025, which could further solidify the regulatory framework for digital assets in the U.S.

Ultimately, Pulte’s directive represents a pivotal moment for cryptocurrency integration into mainstream finance, offering millions of crypto holders new pathways to homeownership and signaling a growing acceptance of digital assets within the U.S. government-backed housing market.