US regulator issues order to consider cryptocurrency as asset for mortgages

The US Federal Housing Finance Agency (FHFA) has issued an order to consider cryptocurrency as an asset when issuing loans for home purchases. The initiative was announced by Bill Pulte, the head of the regulator.

This shift in the federal housing policy could redefine mortgage lending standards in the US. Additionally, the changes could increase engagement with cryptocurrencies as accepted financial tools, the Cryptocurrency Press says. 

The agency, led by Pulte, strives to keep pace with advancing financial tools. Fannie Mae and Freddie Mac, American mortgage giants, have been ordered to treat crypto as an asset in home purchase considerations. This could boost institutional involvement in the crypto market, while also expanding the utility of Bitcoin and Ethereum, the Cryptocurrency Press notes. 

The FHFA’s initiative may impact the broader US housing market as it integrates crypto assets with traditional financial tools. In addition, the changes could make it mandatory to hold cryptocurrency using regulated platforms.