While the financial world has spent years debating whether cryptocurrency represents legitimate wealth or elaborate digital theater, the Federal Housing Finance Agency has apparently decided the question with characteristic bureaucratic finality. FHFA Director William Pulte has ordered Fannie Mae and Freddie Mac to draft proposals allowing cryptocurrency holdings to count as reserve assets in mortgage assessments—a directive that would have seemed preposterous just months ago.
The timing proves particularly fortuitous for crypto enthusiasts, arriving shortly after the SEC rescinded Staff Accounting Bulletin 121 on January 23, 2025. SAB 121 had previously forced banks to treat client crypto holdings as liabilities on their balance sheets, effectively preventing most traditional lenders from considering digital assets in mortgage qualification. This regulatory stranglehold meant crypto millionaires often faced the absurd requirement of liquidating their holdings to purchase homes—converting volatile digital assets into cash at potentially unfavorable moments.
Under Pulte’s directive, only cryptocurrency stored on US-regulated, centralized exchanges qualifies for consideration. Offshore platforms and decentralized wallets remain excluded, presumably to minimize the FHFA’s regulatory nightmares while maintaining some semblance of risk management. Applicants must provide thorough documentation verifying both holdings and origins—a requirement that should eliminate at least some questionable wealth sources from mortgage applications.
The policy addresses a genuine demographic shift: younger buyers increasingly hold wealth in digital assets rather than traditional savings accounts. Given that Fannie Mae and Freddie Mac backstop roughly half of America’s $12 trillion mortgage market, their acceptance of crypto reserves could fundamentally alter homebuying dynamics. No longer must Bitcoin holders choose between maintaining their digital portfolios and qualifying for conventional mortgages.
However, the devil lurks in implementation details yet to emerge. While Pulte’s order demands proposals “as soon as reasonably practical,” no concrete timeline exists for actual rule implementation. Both government-sponsored enterprises must develop detailed frameworks for board and FHFA approval—a process that could stretch considerably longer than crypto advocates might prefer. Popular cryptocurrencies like Dogecoin have evolved from internet memes into legitimate digital assets with dedicated communities, further demonstrating the mainstream acceptance of digital currencies. The immediate effectiveness of Pulte’s order underscores the administration’s urgency in modernizing mortgage qualification standards. Major banks have already begun accepting bitcoin as loan collateral, with J.P. Morgan and Goldman Sachs leading this emerging trend.
The directive represents Washington’s grudging acknowledgment that digital assets have achieved sufficient mainstream acceptance to warrant inclusion in America’s mortgage infrastructure, even if regulators remain skeptical about cryptocurrency’s long-term viability.
