U.S. Regulator Orders Bitcoin and Crypto Inclusion in Mortgage Assessments

The U.S. Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac, government-sponsored enterprises, to include properly documented Bitcoin and other cryptocurrencies in single-family mortgage risk assessments to broaden borrower asset reserve calculations.

Mainstream Recognition of Crypto in Mortgages

Bitcoin and crypto holdings stored on U.S.-regulated exchanges are now viewed as valid borrower reserves in the single-family mortgage risk models, with no cash conversion required. The directive takes effect immediately, and lenders must update their underwriting guidelines accordingly.

Fannie Mae and Freddie Mac guarantee over half of the $12 trillion U.S. residential mortgage market under the FHFA conservatorship since 2008. Historically, mortgage firms counted only cash, stocks and bonds in reserve calculations. This policy shift elevates digital assets alongside traditional securities. It may open home-loan doors for crypto-rich applicants previously sidelined.

The order also directs Fannie and Freddie to include volatility buffers and caps on crypto-reserve percentages.

Implementation Challenges and Market Headwinds

The companies must now draft detailed proposals, secure FHFA approval and overhaul risk-assessment systems. This process will likely span several quarters. Borrowers may not see the benefits until late 2025 as enterprises test and refine their crypto-inclusive models.

Crypto’s notorious volatility remains a hurdle. Bitcoin plunged 16% earlier in 2025 before a swift rebound, underscoring the need for robust price-shock buffers. Lenders may impose strict caps or haircuts on crypto deposits, diluting the policy’s intended boost for digital-asset holders.

Mortgage applications in the U.S. are on the rise since 2022. Yet just 1% of homebuyers used crypto assets to fund purchases in 2023–2024, highlighting how rare crypto-based home financing currently is. Even with the FHFA’s new directive, lenders must overhaul long-standing underwriting models to accept digital assets as valid reserves.

Major banking institutions are proceeding with caution. Top U.S. banks are running limited pilot programs and forging strategic partnerships to test crypto lending, but they await clearer regulatory guardrails before scaling offerings. Lenders also face operational hurdles: they must create custody arrangements similar to securities-control agreements and build robust plans for handling price crashes and margin calls, per legal guidance.

The FHFA’s rule confines eligibility to cryptocurrencies held on licensed U.S. platforms, excluding self-custodied wallets and DeFi balances. Combined with mandated volatility buffers – where lenders apply haircuts when valuing crypto reserves – and caps on crypto-based asset ratios, this narrow acceptance window limits the policy’s immediate impact on borrower capacity. Broad uptake will hinge on how swiftly lenders integrate these new guidelines and upgrade loan-processing systems.