Federal Housing Finance Agency: Will study the application of Cryptocurrency holdings in mortgage eligibility standards

Gate News bot message, according to Bitcoinist, the Federal Housing Finance Agency (FHFA) is exploring whether BTC and stablecoin and other encryption assets can be considered as part of the asset base for determining mortgage eligibility. This move could have a significant impact on the way Financial Institutions assess creditworthiness, especially if Cryptocurrency is formally recognized in the mortgage underwriting process.

Federal Housing Finance Agency Director William Pulte announced in an article on X that the agency will study the use of Cryptocurrency holdings in mortgage qualification.

"We will study the relationship between Cryptocurrency holdings and eligibility for collateralized loans," Purt said.

If approved, this would represent a structural transformation in the way traditional lending institutions integrate with the digital asset market. The Federal Housing Finance Agency regulates government-sponsored entities such as Fannie Mae and Freddie Mac, which play a central role in the US mortgage market.

Before this, the ability of banks to provide loan support for encryption was restricted due to the guidance of the U.S. Securities and Exchange Commission (SEC) (i.e., SAB 121).

The rule requires listed companies to report Cryptocurrency held on behalf of customers as liabilities, making it necessary for banks to hold large amounts of capital to deal with these assets. However, the guideline was revoked in January 2025, creating regulatory space for the wider integration of Cryptocurrency into financial services, including mortgage loans.

Although the collateralized loans supported by Cryptocurrency have existed through niche financial institutions, they are typically only available to high-net-worth individuals or tech-savvy investors.

These products typically involve borrowers obtaining loans in legal tender coins, while pledging digital assets as collateral, and have strict requirements, with the risk of additional margin calls if the asset value falls.

If the Federal Housing Finance Agency continues to include digital currency coins in mortgage assessments, such services may become more accessible and may be offered by traditional financial institutions.

Including the amount of Cryptocurrency holdings in mortgage loan evaluations could have a broader impact on borrowers and lenders. A report released at the end of 2024 highlighted a trend: some low-income families have been using profits from Cryptocurrency investments to repay mortgage loan debts.

The same report pointed out that in regions with high adoption rates of digital currency, lending has increased significantly, indicating that digital assets are becoming financial instruments in a wider range of socio-economic fields.

The Federal Housing Finance Agency has not yet set a timetable for implementing any reforms, nor has it specifically indicated which cryptocurrencies may qualify as eligible assets. However, the agency is willing to explore this option, indicating that regulatory acceptance of digital assets is increasing.

Future policy discussions are expected to focus on risk assessment, asset volatility, and standardized valuation criteria. Whether this will lead to major US banks launching Cryptocurrency collateral loan products remains to be seen, but this discussion marks the evolution of people's concept of feasible wealth composition in modern finance.