US FHFA to Study Use of Crypto Holdings in Mortgage Qualification Criteria

The FHFA is investigating the role of cryptocurrency in mortgage eligibility, potentially impacting how lenders assess creditworthiness. This move follows recent SEC changes that create opportunities for digital asset integration into mortgage lending. Current crypto-backed mortgages are mainly for high-net-worth individuals, but future regulations may open options for wider access. The implications for borrowers, especially lower-income households, could reshape financial approaches alongside the growing acceptance of digital assets in regulation.

The Federal Housing Finance Agency (FHFA) in the United States has revealed it’s looking into incorporating cryptocurrency assets into mortgage qualification criteria. This could be a game-changer for how lenders judge creditworthiness, potentially allowing Bitcoin and stablecoins to count towards the necessary asset base for mortgages.

William Pulte, the FHFA director, shared this update on X, stating they aim to explore the role of cryptocurrency holdings in mortgage eligibility. If this research leads to formal acceptance, it could indicate a major shift in how traditional banks interact with digital assets.

Traditionally, banks faced challenges in offering crypto-backed loans due to SEC regulations known as SAB 121. This rule required companies to list crypto held on behalf of clients as liabilities, making banks hesitant to deal with these assets. But, since this guidance was lifted in January 2025, an opportunity has opened up for integrating cryptocurrency more broadly in financial services, like mortgage lending.

Currently, niche financial firms offer crypto-backed mortgages, but these are generally only available for wealthy individuals or savvy investors. Borrowers often secure loans in traditional currency but must pledge their digital assets as collateral, which can bring risks such as margin calls if the digital asset value fluctuates negatively. If FHFA approves changes, these offerings could become accessible to a wider population, even regular banking institutions.

The inclusion of cryptocurrency in mortgage evaluations could have wide-ranging implications for both borrowers and lenders. A late 2024 report showed some lower-income households relied on crypto investments to help pay down mortgage debts. It also pointed out that borrowing seems to increase in areas where digital currency is widely used, hinting at a shift in how various economic segments view digital assets as financial tools.

At this stage, the FHFA hasn’t given a timetable or specified which cryptocurrencies will qualify as assets for mortgages. However, their initiative to consider this option signals a more welcoming stance towards digital currencies in the financial regulatory landscape. Future discussions are likely to revolve around assessing risks, understanding the volatility of these assets, and establishing standardized valuation guidelines. Whether or not crypto-friendly mortgage products will emerge from major US financial institutions remains uncertain, but the conversation suggests a significant evolution in how wealth is perceived in today’s financial sphere.