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Homebuyers could soon use crypto to help get a mortgage under new Trump admin plan | CNN Business

The article from CNN, published on June 25, 2025, titled "Fannie Mae and Freddie Mac to Accept Crypto Assets as Collateral for Mortgages," delves into a groundbreaking shift in the mortgage industry. The piece outlines how the two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, are set to accept cryptocurrencies as collateral for mortgage loans, marking a significant evolution in the financial sector's approach to digital assets.

The article begins by providing context on the current state of the mortgage market and the role of Fannie Mae and Freddie Mac. These entities, established to promote homeownership by providing liquidity, stability, and affordability to the U.S. housing market, have traditionally dealt with conventional assets such as cash and securities. However, the rapid rise of cryptocurrencies and their increasing acceptance in mainstream finance has prompted these GSEs to reconsider their collateral policies.

The decision to accept cryptocurrencies as collateral is seen as a response to the growing demand from a segment of the population that holds significant portions of their wealth in digital assets. The article cites a recent survey indicating that over 10% of Americans now hold cryptocurrencies, with a notable portion of younger demographics, particularly millennials and Gen Z, showing a preference for digital over traditional assets. This shift in asset preference has created a gap in the mortgage market, as many potential homebuyers find themselves unable to leverage their crypto holdings for home purchases.

Fannie Mae and Freddie Mac's move to accept cryptocurrencies is detailed as a strategic effort to bridge this gap. The article explains that the GSEs will initially accept major cryptocurrencies such as Bitcoin and Ethereum, with plans to expand to other digital assets as the market evolves. The process for using cryptocurrencies as collateral involves converting the digital assets into a stablecoin or fiat currency at the time of the mortgage application, ensuring that the value of the collateral remains stable throughout the loan term.

The article also discusses the potential risks and challenges associated with this new policy. One of the primary concerns is the volatility of cryptocurrencies, which can fluctuate dramatically in value over short periods. To mitigate this risk, the GSEs have implemented stringent valuation and monitoring protocols. These include real-time tracking of cryptocurrency values and the use of sophisticated algorithms to assess the risk associated with each digital asset. Additionally, the GSEs have set a maximum percentage of the loan amount that can be covered by cryptocurrencies, ensuring that a significant portion of the collateral remains in more stable assets.

Another challenge highlighted in the article is the regulatory environment surrounding cryptocurrencies. The GSEs are navigating a complex landscape of federal and state regulations, which vary widely in their approach to digital assets. The article notes that Fannie Mae and Freddie Mac have been working closely with regulatory bodies such as the Federal Housing Finance Agency (FHFA) and the Securities and Exchange Commission (SEC) to ensure compliance with existing laws and to advocate for clearer guidelines on the use of cryptocurrencies in mortgage lending.

The article also explores the potential impact of this policy change on the broader housing market. By allowing cryptocurrencies as collateral, Fannie Mae and Freddie Mac are expected to increase access to homeownership for a segment of the population that has been underserved by traditional mortgage products. This could lead to a surge in demand for housing, particularly in markets where cryptocurrency adoption is high. The article cites experts who predict that this move could contribute to rising home prices in certain areas, as more buyers enter the market with the ability to leverage their digital assets.

Furthermore, the article discusses the implications for the cryptocurrency market itself. The acceptance of cryptocurrencies by major financial institutions like Fannie Mae and Freddie Mac is seen as a significant step towards mainstream adoption. This could lead to increased legitimacy and stability for digital assets, as more investors and institutions become comfortable with their use in high-value transactions such as home purchases.

The article also touches on the technological infrastructure required to support this new policy. It explains that the GSEs have invested heavily in blockchain technology and other digital tools to facilitate the secure and efficient transfer of cryptocurrencies. This includes partnerships with leading fintech companies to develop platforms that can handle the complexities of digital asset transactions while ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

In addition to the technical and regulatory aspects, the article delves into the social and economic implications of this policy change. It highlights the potential for increased financial inclusion, as individuals who have been excluded from traditional banking systems due to lack of credit history or other barriers may now have a pathway to homeownership through their cryptocurrency holdings. The article also discusses the potential for this policy to exacerbate wealth inequality, as those with significant cryptocurrency investments stand to benefit more from the increased access to mortgage financing.

The article concludes by offering perspectives from various stakeholders, including real estate agents, financial advisors, and cryptocurrency enthusiasts. Many see this move as a positive development that aligns with the evolving nature of wealth and asset management. However, there are also voices of caution, emphasizing the need for careful risk management and ongoing evaluation of the policy's impact on the housing market and the broader economy.

Overall, the article provides a comprehensive overview of Fannie Mae and Freddie Mac's decision to accept cryptocurrencies as collateral for mortgages, exploring the motivations, challenges, and potential impacts of this significant shift in the mortgage industry. It underscores the dynamic nature of the financial landscape and the ongoing integration of digital assets into traditional financial systems.

Read the Full CNN Article at:
[ https://www.cnn.com/2025/06/25/economy/fannie-and-freddie-crypto-asset-mortgages ]