Crypto and Mortgages: Trump Administration Opens Door to Digital Assets in Home Loans

A major policy shift could integrate cryptocurrency into the U.S. mortgage system

Prospective homebuyers in the United States may soon be able to use their cryptocurrency holdings as part of their mortgage application, thanks to a new directive issued by Bill Pulte, head of the Federal Housing Finance Agency (FHFA).

In a recent statement, Pulte announced that the housing finance giants Fannie Mae and Freddie Mac have been directed to begin preparing for the possibility of counting crypto assets as qualifying assets in mortgage evaluations. This marks a significant shift in federal housing policy and aligns with President Donald Trump’s vision of establishing the United States as a global leader in the digital asset economy.

“I ordered Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage,” Pulte wrote, describing it as part of President Trump’s broader pro-crypto agenda.

From Restriction to Adoption: A New Era for Crypto in Housing

This policy marks a sharp reversal from the stance taken during the Biden administration, when crypto-based income was explicitly excluded from mortgage applications due to its volatility and regulatory uncertainty.

Now, with Trump’s renewed support for digital assets—underscored by his personal involvement in crypto ventures—there’s a growing push to recognize cryptocurrency as a legitimate form of wealth within traditional financial systems.

Instead of treating cryptocurrency as income, the policy would categorize it as a financial asset, allowing buyers to list it alongside traditional assets such as savings, investments, and property.

Why This Matters: Addressing Affordability in a Tight Market

The announcement comes at a time of ongoing challenges for American homebuyers:

• Record-high home prices, especially in urban centers

• Elevated mortgage interest rates, hovering around 7%

• Liquidity challenges, especially for younger buyers and tech-savvy investors

Allowing crypto to count as an asset could broaden access to mortgage credit for individuals who hold significant digital wealth but are reluctant to convert it into U.S. dollars due to tax implications or market timing concerns.

The Potential Upsides and Risks of Crypto-Backed Mortgages

Potential Benefits:

• Expands mortgage access to a new demographic of buyers

• Modernizes the U.S. housing finance system

• Reflects the growing role of alternative assets in wealth building

Key Concerns:

• Cryptocurrencies are highly volatile, which may complicate underwriting

• If Fannie and Freddie are privatized, the lack of federal backing could result in higher interest rates for borrowers

• Investors in mortgage-backed securities may perceive additional risk, impacting demand and pricing

Analysts have noted that if Fannie and Freddie lose their government conservatorship, lenders may respond to crypto integration by raising borrowing costs to offset perceived instability in loan portfolios.

Next Steps: Proposal Development and Risk Assessment

This initiative is not yet final. Pulte has instructed both Fannie Mae and Freddie Mac to develop and submit formal proposals outlining how cryptocurrency would be evaluated as part of the mortgage application process.

The proposals must include risk mitigation measures, such as market volatility adjustments, and must be approved by the FHFA and the companies’ boards of directors before implementation.

“Fannie and Freddie should consider additional risk mitigants per their own assessment,” Pulte emphasized, “including adjustments for market volatility.”

Looking Ahead

If fully implemented, this policy could significantly impact both the mortgage market and the broader adoption of digital currencies in mainstream finance. While some see it as a positive step toward innovation, others caution that the long-term risks must be carefully managed.

As the crypto economy continues to evolve, the question remains: can digital assets truly reshape how Americans buy homes? The answer may arrive sooner than expected.