The post FHFA Orders Fannie Mae and Freddie Mac to Recognize Crypto as Mortgage Asset appeared first on Coinpedia Fintech News
The Federal Housing Finance Agency (FHFA) under director William Pulte, has directed Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) to consider cryptocurrency in their risk assessments for single-family loans. Pulte noted in an X post that the decision was based on an intense review and the desire to observe President Donald Trump’s bid to facilitate the mainstream adoption of digital assets in the United States.
“FHFA hereby directs each enterprise to prepare a proposal for consideration of cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessment, without conversion of said cryptocurrency to U.S. dollar,” the order noted.
According to the order, both Fannie Mae and Freddie Mac should only consider crypto assets that are traded and stored in U.S.-regulated centralized exchanges led by Coinbase Global Inc. (NASDAQ: COIN) and Robinhood Markets Inc. (NASDAQ: HOOD).
Market Impact of the FHFA Orders on Crypto Assets
The FHFA orders on Fannie Mae and Freddie Mac to consider crypto assets in their risk assessments for single-family loans has attracted significant attention in the web3 space. According to Michael Saylor, co-founder and chairman at Strategy, the move by FHFA is a defining moment for institutional adoption of Bitcoin.
The notable proliferation of new crypto legislation and regulations has marked a major inflection point where traditional financial institutions have gained confidence to embrace digital assets.
Following the announcement, Bitcoin price edged 1 percent higher on Wednesday to trade at about $107,748 during the mid-North American session. However, Bitcoin price faces short-term bearish sentiment unless the flagship coin consistently closes above $110k in the coming days.
