Bitcoin Bets Surge After Mortgage Qualifier Directive

A major policy change has begun at the Federal Housing Finance Agency (FHFA) with the consideration of including Bitcoin and Ethereum in mortgage reserve requirements.

Under the direction of FHFA director Bill Pulte, this change is being made to make it possible for people who own Bitcoin to leverage their digital assets to qualify for a mortgage.

The directive tells the two largest mortgage lenders in the country, Fannie Mae and Freddie Mac, to come up with plans that include Bitcoin as an asset when evaluating the risk of a loan.

Mortgage risk assessments will now take bitcoin holdings into account directly, rather than requiring their conversion to US dollars. This change could make it easier for homebuyers with cryptocurrency to qualify for a mortgage.

Directing the Federal Housing Finance Agency (FHFA), William Pulte issued an order to government-sponsored enterprises (GSEs) on Wednesday to "prepare their businesses to count cryptocurrency as an asset for a mortgage." GSEs are vital to the home financing industry.

The government stepped in to rescue the two housing titans when the markets crashed, putting them under conservatorship and ruining their finances. Since then, FHFA has made it a yearly tradition to evaluate its risk management procedures and the stability of its finances.

The new directive can boost the real estate market because it provides more flexibility to homebuyers who hold substantial amounts of Bitcoin.

As more and more people come to see cryptocurrencies as valid financial tools, this regulatory change is reflective of the trend toward incorporating digital assets into established financial systems.

The fact that the FHFA is thinking about adopting Bitcoin and Ethereum as mortgage qualifying criteria shows that they are serious about updating the home financing system and changing with the times.

Pulte has ordered all businesses to come up with a plan to use cryptocurrencies as a reserve asset in their risk assessments for single-family mortgage loans, but they can't convert it to dollars.

The order specifies that all businesses must adhere to all local, state, and federal regulations when considering cryptocurrency assets, including the requirement that they be housed on a centralized exchange that is licensed by the United States.

The new rule from the FHFA has the potential to significantly alter mortgage eligibility and evaluation, and it could also pave the way for the use of Bitcoin in real estate transactions.

The FHFA is paving the way for wider Bitcoin acceptance with the integration of cryptocurrencies. Industry watchers are emphasizing the regulatory and financial implications of these shifts.

By recognizing Bitcoin as real collateral that isn't backed by traditional money, this change could make other financial areas more stable and encourage more scrutiny of proof of reserves and custody solutions.

After using crypto donations to help finance his re-election campaign, President Trump has been trying to change the way the country handles cryptocurrencies ever since he took office.

To position the United States as "a leader among nations in government digital asset strategy," the White House announced earlier this year that Trump issued an executive order creating a Strategic Bitcoin Reserve and a US Digital Asset Stockpile.

A $2.5 billion agreement to establish a bitcoin treasury with institutional investors was announced in May by the Trump Media and Technology Group.

While in Las Vegas for the Bitcoin 2025 Conference that same month, Vice President JD Vance stressed that the Trump administration is friendlier to the new digital asset sector than its predecessors.

The use of Bitcoin in mortgage evaluations has the potential to spur innovation in housing finance regulation and technology.

It has the potential to transform asset custody practices in the long run and increase demand for mainstream crypto-custodial services.

Legitimizing digital assets in traditional finance and improving mortgage access for cryptocurrency holders might have a substantial influence on the housing industry as a result of the FHFA's policy move.

Changes in tax policy can drastically alter the current incentive landscape for cryptocurrency investments.

There may be a spike in long-term crypto-based real estate investments if investors are encouraged to hold on to their assets longer by avoiding capital gains taxes while utilizing crypto for mortgage purposes.

New financial structures that pool crypto assets with real estate will emerge as a result of this change.

The legislation has the ability to entice a broader spectrum of investors with an interest in both sectors, which could result in an influx of new crypto-based real estate investments.

Borrowing against one's cryptocurrency holdings in the form of a mortgage might free up capital that has been sitting in illiquid assets for individuals who own significant amounts of crypto.

Those who have amassed a fortune in the cryptocurrency field may be more inclined to invest in real estate as a result of this.

This policy development was analyzed yesterday by BRN analyst Valentin Fournier during a live discussion with Hongbin Jeong on MoneyFM 89.3 FM. The conversation explored how this regulatory shift could fundamentally change cryptocurrency's role from a speculative asset to a legitimate financial instrument tied to real-world assets like real estate, potentially impacting both crypto valuations and the broader housing market. Listen to the recording here .

Elsewhere

Blockcast

Ripple's Journey: From Payments to Financial Solutions

This week, host Takatoshi Shibayama interviews Eric van Miltenberg , SVP of Strategic Initiatives at Ripple, discussing the APEX 2025 conference, Ripple's evolution from a payment-focused company to a broader financial solutions provider, and the future of the crypto industry.

They explore the similarities between the internet boom and the current blockchain landscape, the importance of regulatory clarity, and the potential of tokenization in various sectors. Eric shares insights on Ripple's strategic acquisitions and the company's commitment to addressing real-world problems through innovative technology.

Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama . Previous episodes of Blockcast can be found here , with guests like Davide Menegaldo (Neon EVM), Jeremy Tan (Singapore parliament candidate), Alex Ryvkin (Rho), Hassan Ahmed (Coinbase), Sota Watanabe (Startale), Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on our recent shows.

Blockhead is a media partner of Coinfest Asia 2025. Get 20% off tickets using the code M20BLOCKHEAD at https://coinfest.asia/tickets .