The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to prepare to accept cryptocurrencies as a form of collateral. This is the first major step towards integrating digital assets into the U.S. federal mortgage system.
Initial vision and regulations
FHFA Director, William Pulte, a cryptocurrency advocate and grandson of the founder of Pulte Homes, announced this decision on X, emphasizing that it aligns with President Trump's vision to make the U.S. a global cryptocurrency hub. This move comes just two days after Pulte asked the two companies to explore how cryptocurrencies could be counted towards mortgage eligibility criteria.
According to the directive, FHFA believes that allowing Fannie Mae and Freddie Mac to consider a wider range of borrower assets, including cryptocurrencies, could help them better assess loan risks and expand access to homeownership for qualified borrowers. Fannie Mae and Freddie Mac now have the task of determining how cryptocurrencies can be considered eligible assets.
Mixed reactions and initial limits
Reactions on X have been mixed. Some, like Michael Saylor, co-founder of Strategy, have praised the move as a "defining moment" for Bitcoin adoption and recognition of collateral assets.
However, others criticized the regulation requiring cryptocurrency assets to be held on regulated centralized exchanges in the U.S. rather than self-custody wallets. FHFA stated: "Each enterprise is directed to only consider cryptocurrency assets that can be verified and stored on a regulated centralized exchange in the U.S., complying with all current laws."
Notably, Housecoin, a housing-themed meme coin on the Solana blockchain, surged 20% to $0.24 following this news. #anhbacong