US regulator orders lending giants to consider crypto for mortgages

In a social media post on Thursday (26 June), William Pulte, the director of the Federal Housing Finance Agency (FHFA), wrote: “In keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.”

The FHFA said that cryptocurrency should be treated as an asset for single-family mortgage loan risk assessments, without the need to convert the digital assets to US dollars.

The regulator acknowledged that each enterprise should “consider additional risk mitigants per their own assessment”.

The order is effective immediately and should be implemented as soon as possible, the FHFA said.

Before implementing changes, Fannie Mae and Freddie Mac, which buy and sell mortgages, must submit and receive approval from their boards.

Could crypto mortgages come to Australia?

Arnab Baral, CEO and managing director of mortgage brokerage Cinch Loans, described the orders as a “milestone” and said it could pave the way for potential change in Australia.

In comments to The Adviser, he said: “While Australian regulators typically adopt a more cautious stance, this could well spark early conversations here.

“If the global trend continues, it’s only a matter of time before the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) begin exploring how crypto fits within responsible lending frameworks.

“Whether we see a similar shift [to the US] in Australia will ultimately depend on how comfortable our regulators are in integrating something as dynamic (and unpredictable) as crypto into lending decisions.”

Dominic Gluchowski, chief marketing officer at Melbourne-based cryptocurrency exchange CoinJar, told The Adviser: “I do believe this decision by US regulators could set an important precedent, and Australia will likely take notice.

“Australia has historically taken a measured approach to regulating new financial technologies, often looking to global leaders, such as the US, for guidance.

“While we’ve been slower to implement wide-reaching crypto regulations, this is not necessarily a bad thing. It allows us to study the impact of these changes overseas, adopt best practices, and avoid stifling innovation – something we’ve seen happen in other developed countries when regulation has moved too quickly.”

Meanwhile, Phil Rice, broker principal at EZ Finance, highlighted that banks would likely be reluctant to embrace crypto in mortgage applications.

“Banks, in my view, see cryptocurrency as a threat to their dominance in the ‘money’ space, so may be hesitant to give any oxygen, in any form, to cryptocurrency,” he said.

However, he added: “Trends change and so too will the perception of crypto. If some banks view crypto as an asset, others will follow, creating a wider acceptance.”

How would crypto change home loans?

Baral pointed to both opportunities and complex challenges of including crypto in mortgage applications.

“Crypto is largely driven by perception: it’s had an incredible run over the past decade, propelled by decentralisation, scarcity narratives, and rapid adoption. But its volatility, regulatory ambiguity, and lack of consistent custody standards still make it a high-risk consideration when it comes to lending,” he explained.

In comments to The Adviser, Baral said that including crypto as an asset for mortgage applications “acknowledges modern wealth, especially for younger borrowers who’ve built genuine value through digital assets.

He added: “It potentially increases borrowing power for those who otherwise don’t meet traditional asset benchmarks.”

However, he acknowledged the substantial risks associated with crypto.

“Real-time valuation is volatile and often speculative – which is difficult to reconcile with responsible lending. There’s still no consistent standard for verifying custody, ownership, or acceptable asset types. Lenders would need robust frameworks to prevent fraud and manage risk exposure,” he said.

Similarly, if regulations were to change in Australia, Gluchowski noted the benefits crypto could bring to prospective home buyers along with the digital asset’s volatility risks.

“If Australia follows the US lead, it could significantly alter how lenders evaluate individuals’ financial positions. Including cryptocurrencies as an asset class could help more Australians especially younger, tech-savvy individuals – demonstrate greater financial strength when applying for a home loan,” Gluchowski said.

“It would also encourage borrowers to be more transparent about their digital holdings and could push banks to modernise their risk assessment tools.”

However, Gluchowski warned that “cryptocurrencies are highly volatile”, adding that “this could introduce instability into the loan assessment process and create additional risks for both lenders and borrowers”.

Any future Australian approach should “carefully account for this risk, ensuring that both lenders and borrowers are protected from sharp market swings”.

[Related: ASIC wins first crypto-related case in court]