Fannie, Freddie, and the Future: Crypto’s Institutional Breakthrough

What we’re witnessing isn’t just policy reform—it’s the first visible crack in the old economic order.

On June 25, 2025, the U.S. government’s top housing regulator—the Federal Housing Finance Agency (FHFA)—announced a significant policy shift that could transform how Americans qualify for home loans. Under the leadership of Director William Pulte, the FHFA issued a formal directive to Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that back the majority of single-family mortgages in the United States. The new instruction: begin developing methods to recognize cryptocurrency as a legitimate financial asset when evaluating mortgage applicants.

Until now, digital currencies, such as Bitcoin and Ethereum, have been largely overlooked in traditional mortgage underwriting. If a borrower held significant crypto assets, they were often not counted toward qualifying for a loan unless those assets were first converted into U.S. dollars—a process that could trigger capital gains taxes and weaken a borrower’s financial position. With this change, the FHFA is signaling that, if held under regulated conditions, crypto should be considered alongside more conventional assets, such as cash, stocks, and bonds, when assessing a borrower's creditworthiness and reserve strength.

This marks the first time that a federal housing policy directive has explicitly acknowledged cryptocurrency as part of the mainstream financial profile of an American borrower. The FHFA’s decision reflects growing recognition that digital assets are now a significant component of personal wealth for millions of Americans. By ordering Fannie Mae and Freddie Mac to begin treating crypto holdings as a relevant part of mortgage risk assessments, the agency is taking a historic step toward integrating the digital economy into the traditional housing finance system.

What Does This Mean for You If You Hold Crypto

If you’re applying for a mortgage, this policy change could significantly improve your chances of qualifying, especially if you’ve been building wealth through cryptocurrency. The Federal Housing Finance Agency’s new directive means that your crypto holdings—including popular assets like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and others—may now be counted as part of your financial reserves when applying for a home loan backed by Fannie Mae or Freddie Mac.

Crypto Counts as Reserves—Without Conversion

Traditionally, banks and mortgage lenders wouldn’t recognize your crypto assets unless you liquidated them—that is, sold them for U.S. dollars and transferred the funds to a bank account. This approach posed a huge barrier for many crypto holders, forcing them to choose between preserving their digital investment portfolios or qualifying for a mortgage.

Now, under the new guidance, as long as your cryptocurrency is held on a U.S.-regulated centralized exchange (such as Coinbase, Kraken, or Gemini), it can be counted without requiring conversion to fiat currency. This provides lenders with a more comprehensive view of your financial stability, enabling you to maintain your investments while still meeting mortgage reserve requirements.

Avoid Triggering Capital Gains Taxes

Perhaps the most significant benefit is avoiding unnecessary tax consequences. When crypto investors sell their digital assets—especially after holding them during considerable market growth—they often face capital gains taxes on the profit. Under the old system, you had to sell to “prove” you had reserves, effectively penalizing you for using your savings. With this change, you no longer have to realize gains just to be treated as financially sound.

Crypto Investors See a Path to Homeownership

The reaction from the crypto community has been overwhelmingly positive. Ethereum (ETH) and XRP investors, in particular, have expressed relief and excitement across various forums, social media platforms, and cryptocurrency news channels. Many of them have been long-term holders—also known as “HODLers”—who’ve weathered market cycles and built sizable digital portfolios over time. Until now, these savings couldn’t be used to prove mortgage eligibility without significant trade-offs.

Now, for the first time, crypto holders can keep their assets invested while demonstrating to mortgage lenders that they have financial depth and responsibility. An XRP community member on Reddit summed it up: “I’ve been saving in crypto for years. Finally, I can buy a house without being forced to cash out and get hit with a tax bill.”

Similarly, ETH enthusiasts have pointed out that this change brings digital finance closer to mainstream financial systems, making homeownership a more realistic goal for younger, tech-savvy investors who don’t hold their wealth in traditional savings accounts.

A Shift Toward Modern Finance

At its core, this policy marks a profound acknowledgment of the changing landscape of personal wealth in the 21st century. As cryptocurrency continues to cement itself as a legitimate financial asset, the U.S. housing system—long reliant on traditional measures of creditworthiness—is finally beginning to adapt. The decision by the Federal Housing Finance Agency to permit crypto holdings in mortgage evaluations reflects a growing understanding that wealth no longer lives solely in savings accounts, brokerage portfolios, or CDs. Instead, for an increasing number of Americans—particularly Millennials and Gen Z—wealth is being stored, grown, and diversified through digital currencies like Bitcoin, Ethereum, XRP, and others.

The greatest shifts in the history of money are never announced—they unfold silently, coded into policy, embedded in paperwork. By the time people realize the currency has changed, they’re already spending it. - Tore Maras