Trump Administration's Game-Changer: Counting Cryptocurrency as a Federal Mortgage Asset
Transformative News for Cryptocurrency in Housing Finance
In a landmark shift for U.S. housing finance, the Federal Housing Finance Agency has mandated that Fannie Mae and Freddie Mac acknowledge cryptocurrency as an asset in mortgage loan risk assessments. This initiative, spearheaded by FHFA Director William J. Pulte, marks a new phase of crypto integration into traditional finance, particularly impacting single-family loans.
Key Details of the Directive
- The directive was signed on Wednesday.
- Both housing giants must propose methods to include digital assets without requiring borrowers to convert them to U.S. dollars.
- It promotes crypto's role in household portfolios amid growing institutional crypto acceptance.
Pulte noted that the move aligns with Trump’s vision for the U.S. to be the crypto capital of the world. Historically, crypto faced exclusion from underwriting due to its volatility and regulatory ambiguity, but this directive aims to change that.
Implementation and Future Considerations
- Only digital assets on U.S.-regulated exchanges will be considered.
- Internal adjustments must be developed to manage market volatility.
This significant evolution for cryptocurrency could reshape mortgage financing in the U.S. as Fannie Mae and Freddie Mac submit their proposals for approval.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.