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The bill lets verified crypto holdings help people qualify for mortgages and creates a standardized, FHFA‑reviewed process with risk‑mitigating haircuts, but it increases GSE exposure to crypto market and custody risks and may disadvantage smaller market participants.
Homebuyers who hold verified digital assets can count those assets as mortgage reserves without converting to U.S. dollars, making it easier for some borrowers to qualify for loans.
Fannie Mae, Freddie Mac, and mortgage lenders get a standardized, FHFA‑reviewed framework for assessing digital‑asset risk, reducing regulatory uncertainty and improving consistency in underwriting and oversight.
Borrowers and lenders benefit from required risk‑based haircuts that account for volatility, liquidity, and concentration, which helps limit abrupt losses from crypto price swings.
Taxpayers and the mortgage market could face greater systemic or contingent losses because accepting digital assets as reserves exposes Fannie Mae and Freddie Mac to operational, custody, valuation, or market risks if crypto markets collapse or practices fail.
Homebuyers who rely on volatile digital assets may still face higher effective reserve haircuts than cash holders, reducing the practical benefit of counting crypto toward mortgage qualification.
Smaller lenders and borrowers without access to qualified custodians or approved arrangements may be disadvantaged compared with larger institutions or wealthier borrowers who can use approved custodial services.
Based on analysis of 2 sections of legislative text.
Permits certain borrower-held digital assets in qualified custody to be counted as reserves for single-family mortgage risk assessments, subject to risk-based adjustments and FHFA review.
Introduced July 28, 2025 by Cynthia M. Lummis · Last progress July 28, 2025
Permits borrowers’ holdings in certain digital assets to be counted as reserves for single-family mortgage risk assessments by the two housing finance corporations, provided those assets are held under a defined qualified custodial arrangement and subject to risk-based adjustments for volatility, liquidity, and concentration. Requires the corporations’ boards to approve methodologies and submit them to the Federal Housing Finance Agency (FHFA) director for review before implementation or material revision, and mandates periodic review of the risk adjustments.