The Federal Housing Finance Agency is reviewing the use of Bitcoin and other cryptocurrencies in mortgage eligibility assessments.
The Federal Housing Finance Agency (FHFA) of the United States, through its director William Pulte — appointed by President Donald Trump — has announced its intention to thoroughly examine the use of Bitcoin and other digital assets as a qualifying factor for access to mortgage financing. The agency could potentially open the door to Bitcoin, stablecoins, and other cryptocurrencies as recognized assets in the housing finance sector.
“We will study the usage of cryptocurrency holdings as it relates to qualifying for mortgages,” said the FHFA director on X.
Until January 23, 2025, most U.S. banks were unable to offer loans or mortgages backed by cryptocurrencies due to restrictions imposed by the Securities and Exchange Commission (SEC). The guidelines under SAB 121 required publicly listed companies to report digital assets held on behalf of clients as liabilities on their balance sheets, creating complications for banks’ capital requirements.
The SEC’s official repeal of SAB 121 has removed these regulatory barriers, opening up new opportunities for integrating digital assets into the traditional financial system.
Currently, cryptocurrency-backed real estate financing solutions already exist, offered primarily by specialized firms. These companies allow clients to obtain fiat loans for property purchases, using digital assets as collateral with strict coverage requirements.
In the event of a drop in the value of the collateralized assets, clients must provide additional digital assets to avoid forced liquidation. With the FHFA’s new guidelines, similar offerings could emerge from traditional banks, alongside new lending products.
According to research published in late November 2024, a growing number of lower-income families have been using profits from cryptocurrency investments to pay off their mortgages.
