Trump Administration Orders Fannie Mae and Freddie Mac to Consider Cryptocurrency in Mortgage Applications

In a significant shift in US housing policy, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to begin developing proposals that would allow cryptocurrency to be considered as an asset in mortgage applications, Newsweek reports.

The directive aligns with the Trump administration’s broader efforts to position the United States as a leader in digital finance.

FHFA Director William J. Pulte announced the move on Wednesday, stating that it reflects President Donald Trump’s vision to make the US the “crypto capital of the world.” Pulte emphasized that the inclusion of cryptocurrency in mortgage evaluations represents a break from prior policy under the Biden administration, which had discouraged the use of digital assets in such financial assessments due to volatility concerns.

The new FHFA directive instructs Fannie Mae and Freddie Mac—two government-sponsored enterprises that back more than half of US home loans—to explore how cryptocurrency holdings could count as reserves in mortgage risk assessments. Notably, the proposal would allow crypto assets to be evaluated in their original form, without requiring conversion to US dollars.

However, the FHFA has set boundaries. Only crypto assets stored on US-regulated centralized exchanges that comply with relevant laws are eligible for consideration. The directive also calls for risk mitigants to address the high volatility of cryptocurrencies, such as price adjustments or other safeguards.

While the document does not specify which digital currencies would be eligible, it marks the first time that Fannie Mae and Freddie Mac have been asked to formally examine the integration of crypto assets into the mortgage qualification process.

The move could be a potential game-changer for the US housing market, especially among crypto-savvy buyers. Data from the National Association of Realtors indicates that only 1% of homebuyers used cryptocurrency for down payments between July 2023 and June 2024. Previously, income derived from cryptocurrency was ineligible on mortgage applications due to regulatory concerns over asset stability.

This shift is made possible by the FHFA’s authority over Fannie Mae and Freddie Mac, both of which remain under federal conservatorship following the 2008 financial crisis. Although President Trump has voiced renewed interest in privatizing the two mortgage giants, they remain government-controlled for now.

Trump’s stance on cryptocurrency has notably evolved. Once a skeptic, the president now embraces digital assets, even launching his own branded token in recent years.

Under the FHFA directive, Fannie Mae and Freddie Mac must prepare and present a proposal on how to incorporate cryptocurrency into mortgage underwriting “as soon as reasonably practical.” Final approval would require the endorsement of both the companies’ boards and the FHFA.

The policy is still in its early stages, and significant regulatory and financial scrutiny is expected. While proponents argue it could modernize the housing finance system and broaden access for digital asset holders, others warn that it may introduce new risks into an already complex market.