In a landmark decision, Federal Housing Finance Agency Director William Pulte announced plans to consider cryptocurrency as a mortgage asset on Wednesday, aligning with President Donald Trump’s vision of making the U.S. a global crypto hub.
What Happened: Pulte took to X, directing federally backed mortgage giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) to prepare their businesses to count cryptocurrency as an asset for a mortgage.
Pulte said the decision was undertaken after “significant studying” and in line with Trump’s vision of making America the crypto capital of the world.
The directive asked Fannie and Freddie to consider only those assets that can be stored on a U.S.-regulated cryptocurrency exchange, subject to applicable laws.
FHFA said that the new consideration could enable Fannie and Freddie to assess the full spectrum of assets available for reserves and facilitate “sustainable homeownership to creditworthy borrowers.”
Fannie and Freddie play a crucial role in the U.S. mortgage market and both set the industry standards that all other home lenders follow.
Why It Matters: The directive comes just a day after Michael Saylor offered help with Strategy Inc.‘s (NASDAQ:MSTR) Bitcoin (CRYPTO: BTC) Credit Model to support the consideration by FHFA.
Saylor congratulated Pulte on the development, deeming it the moment when Bitcoin “entered the American dream.” However, it should be noted that the directive was not restricted to Bitcoin.
This move comes after the U.S. housing market recorded its slowest May for existing-home sales since 2009. According to the National Association of Realtors, sales slipped 0.7% from a year earlier to an annual rate of 4.03 million, leaving activity about 25% below pre-pandemic norms.
Price Action: At the time of writing, BTC was exchanging hands at $107,727.37, up 1.41% in the last 24 hours, according to data from Benzinga Pro.
Shares of Strategy were up 0.19% in after-hours trading after closing 4.33% higher at $154.31 during Wednesday’s regular trading session.
MSTR stock demonstrated a strong Momentum score but ranked low in Growth and Value. Visit Benzinga Edge Stock Rankings. to compare the top cryptocurrency stocks based on these parameters.
Photo Courtesy: sundaemorning on Shutterstock.com
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