U.S. Housing Regulator Considers Bitcoin in Mortgage Lending Amid Shifting Wealth Paradigms

FHFA Seeks Proposals from Fannie Mae and Freddie Mac on Crypto Asset Integration

The U.S. Federal Housing Finance Agency (FHFA) has formally requested Fannie Mae and Freddie Mac to submit proposals on how to evaluate cryptocurrency holdings, particularly Bitcoin, as part of mortgage lending qualifications. Announced on June 26, 2025, this marks the first significant step by a federal U.S. housing regulator toward recognizing digital assets in the mainstream credit system. The proposals are expected to outline mechanisms for including crypto as part of a borrower’s financial reserves—placing it on par with traditional assets like cash, stocks, or retirement funds, though with notable constraints.

Any crypto asset considered under this new framework must be held on U.S.-regulated exchanges and will be subject to valuation discounts that account for its price volatility. Borrowers will still be required to meet standard income, credit, and employment qualifications, but crypto holdings could serve as an added financial buffer. The FHFA has made clear that the goal is not to replace traditional reserves but to expand acceptable sources of liquidity and risk coverage in mortgage underwriting, especially during an era of evolving wealth models.

Binance founder Changpeng Zhao responded to the announcement with a sharply worded post, claiming that “The new American Dream will soon be about owning 0.1 BTC, not just property.” Zhao called the development a “great step” toward greater institutional acceptance of Bitcoin, echoing a broader sentiment that digital scarcity may eventually rival real estate as a wealth benchmark. His statement also taps into a rising belief within the crypto community that Bitcoin’s hard-capped 21 million coin supply positions it as a better long-term store of value than real estate, particularly as housing markets struggle with affordability, rising rates, and stagnant growth in key metro areas.

Skepticism remains over the proposal’s long-term viability. Critics have raised concerns over the inclusion of such a volatile asset in underwriting models. A user on X (formerly Twitter) pointed to what they called “regulatory gymnastics,” referencing a past FHFA-era where Fannie Mae allegedly covered mortgage payments on behalf of delinquent borrowers with little public transparency. The critic implied the agency’s crypto pivot is less about innovation and more about propping up demand in an increasingly fragile housing market. This timeline aligns with projections for deferred mortgage costs to resurface between August and October 2025—a period flagged by analysts as potentially turbulent for housing finance.

The implications of this regulatory shift extend well beyond mortgage lending. Should Bitcoin and select crypto assets become a recognized part of borrower assessments, the move could catalyze wider integration of digital assets into other areas of consumer finance such as insurance underwriting, pension allocation models, and even social benefit eligibility checks. The FHFA's openness to crypto reserves could also pressure traditional banks to adapt their models to accommodate the financial realities of a growing crypto-native demographic, potentially accelerating cross-sector infrastructure development for digital asset custody and compliance.

Guidance shared by the agency suggests that only a discounted portion of crypto reserves will count, and that using crypto as a reserve—rather than liquidating it—likely won’t trigger a taxable event. However, borrowers are encouraged to consult tax professionals to navigate regulatory gray areas. Bitcoin remains the primary focus, with eligibility for other tokens expected to be limited to those available on fully compliant, U.S.-regulated trading platforms.

This development also places the United States at the forefront of crypto-financial integration on a national regulatory level. While some international fintech lenders have piloted similar models, no country of comparable economic scale has moved to formalize crypto assets into home lending qualifications. If implemented, the policy could redefine risk assessment in American mortgage markets and reshape generational definitions of wealth.

This article has been refined and enhanced by ChatGPT.