According to Deep Tide TechFlow, the Federal Housing Finance Agency (FHFA) has issued directives to explore incorporating cryptocurrency into risk assessments for single-family residential mortgages. This could allow long-term holders to use digital assets when applying for loans.
The directive requires assets to be verified and stored through U.S. regulated centralized exchanges, but does not mandate custody with exchanges. Self-custodied assets are considered the cornerstone of the crypto system due to transparency and security.
Experts are calling for a framework to support both self-custodied and custodied assets, and to apply valuation discounts for volatility, in order to advance the modernization of housing finance.
