While previous administrations grappled with whether Bitcoin qualified as currency or commodity, the Trump White House has decided to skip the philosophical debate entirely and dive headfirst into practical application—directing the Federal Housing Finance Agency on June 25, 2025, to instruct Fannie Mae and Freddie Mac to develop systems that would allow cryptocurrency holdings to count as qualifying assets in mortgage underwriting.
The directive represents a seismic shift from the traditional requirement that borrowers liquidate their digital treasures into boring old dollars before closing. Instead of forcing crypto enthusiasts to cash out their carefully accumulated Bitcoin or Ethereum positions (and presumably trigger taxable events in the process), lenders would now assess these volatile assets as legitimate demonstrations of financial strength.
Crypto holders can finally skip the painful dance of liquidating their digital fortunes just to prove they deserve a mortgage.
Naturally, the government-sponsored enterprises tasked with this integration face the delightful challenge of designing verification systems for assets whose values can swing 20% while underwriters grab their morning coffee. Only cryptocurrencies custodied by U.S.-regulated exchanges like Coinbase will qualify—a restriction that conveniently sidesteps the nightmare of verifying assets stored in hardware wallets or decentralized platforms.
The technical implementation promises to be fascinating. Fannie Mae and Freddie Mac must develop risk mitigation strategies that account for crypto’s notorious volatility while maintaining compliance with existing regulatory frameworks. This likely means applying haircuts to digital asset values that would make traditional securities lending look generous by comparison.
The administration frames this initiative as part of its broader vision to position America as the global crypto leader, complementing legislative efforts like the GENIUS Act for stablecoins. Texas has already established a $10 million strategic Bitcoin reserve, suggesting state-level enthusiasm for digital asset integration. State legislators have embraced digital gold as a pathway to economic prosperity and innovation in the digital age. The policy change eliminates capital gains tax burdens that previously made crypto holders hesitant to pursue homeownership through traditional mortgage channels.
Federal housing leadership boldly predicts this policy will “forever change” real estate and mortgage lending—though whether that change proves beneficial remains an open question. The move potentially expands homeownership access for crypto holders who previously faced the unappealing choice between maintaining their digital positions and securing traditional financing. Some borrowers may even explore advanced strategies like liquidity mining to maximize their crypto holdings while navigating the mortgage approval process.
The broader implications extend beyond individual borrowers, as traditional finance systems must now accommodate assets that didn’t exist two decades ago, fundamentally altering how lenders assess modern wealth accumulation patterns.
