FHFA to Recognize Bitcoin as Mortgage Asset in Major Crypto Policy Shift

The U.S. Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to draft proposals allowing cryptocurrency to be counted as part of mortgage risk assessments—a pivotal move toward mainstream crypto adoption. Under the new directive, crypto assets such as Bitcoin can be recognized as part of a borrower’s reserves without needing to convert them into U.S. dollars.

To qualify, digital assets must be held on U.S.-regulated centralized exchanges like Coinbase or Kraken. Borrowers will need to verify ownership and storage, and all holdings must comply with existing laws, including anti-money laundering (AML) and know-your-customer (KYC) regulations.

This step is seen as a landmark moment for institutional crypto integration. MicroStrategy co-founder Michael Saylor described it as a “defining moment” for Bitcoin. Bitwise CEO Hunter Horsley also emphasized that Bitcoin is now acknowledged as “pristine collateral” for mortgage applications.

While the FHFA's plan aims to bring more financial flexibility to borrowers, Fannie Mae and Freddie Mac will be required to manage the risks associated with crypto volatility. Their final frameworks must be submitted for regulatory approval.

FHFA Director Bill Pulte, a long-time Bitcoin advocate, believes the move positions the U.S. to become the global leader in crypto innovation. He stated the initiative is part of a broader vision to make America the “crypto capital of the world.”

This development marks a significant milestone in the acceptance of digital assets within the U.S. housing finance system and signals increasing alignment between traditional finance and the evolving crypto economy.