The U.S. government has decided to recognize cryptocurrency holdings, such as Bitcoin, as personal assets in mortgage loan assessments. This is a symbolic change where cryptocurrencies are being incorporated into the existing financial system as a 'credit asset'.
The Federal Housing Finance Agency (FHFA) instructed Fannie Mae and Freddie Mac on the 25th (local time) to include borrowers' cryptocurrency holdings in asset evaluations during mortgage loan assessments. These two agencies are key guarantee institutions in the entire U.S. mortgage market, and this measure effectively influences loan assessment standards for all U.S. banks.
Previously, cryptocurrencies were excluded from asset evaluations due to legal uncertainties and regulatory risks. However, going forward, borrowers can have their cryptocurrency holdings recognized in value even without converting them to cash.
The FHFA stated that this is "a measure to more accurately assess the borrower's total financial status and lower housing purchase barriers" and "particularly expects an effect of expanding home ownership for low-income groups".
This decision is also aligned with the cryptocurrency-friendly policy stance of former President Trump. Larry Kudlow, former White House National Economic Council Director, evaluated it as "a measure reflecting Trump's vision of making the U.S. the 'world cryptocurrency capital'".
The market interprets this as a signal of cryptocurrencies obtaining institutional asset status. CNBC reported that "for the first time in U.S. financial history, coin holdings are reflected in mortgage assessments" and called it "the dawn of a new era".
The Federal Reserve (Fed) also recently noted in a report that "some cryptocurrencies, including stablecoins, are establishing themselves as major asset classes in financial markets". Experts forecast that this measure could potentially spread to other financial areas such as corporate lending and financial product design.
The Trump camp had unofficially announced a plan to nurture five strategic assets, including Bitcoin, Ripple, Solana, and Ethereum, last week.
