The Federal Housing Finance Agency (FHFA) is considering including cryptocurrency holdings, such as Bitcoin (BTC), in mortgage qualification assessments. This initiative, announced by FHFA Director William Pulte, follows the Securities and Exchange Commission's (SEC) decision to rescind Staff Accounting Bulletin (SAB) 121 on January 23, 2025. (Source: Reuters, Axios)
The SEC's revocation of SAB 121, which previously required companies to account for digital assets as liabilities, is viewed as a significant regulatory shift. This change could facilitate the integration of digital assets into traditional financial systems, and the FHFA's consideration of crypto holdings in mortgage qualifications aligns with this trend. (Source: Reuters, Axios)
If implemented, this could allow borrowers to list digital assets as eligible assets. This move comes as a growing number of lower-income households are using gains from cryptocurrency investments to pay off their mortgages, as reported in late November 2024. The FHFA's study is being closely monitored by stakeholders in the housing and financial sectors, with a decision expected on June 25, 2025. (Source: Reuters, Axios)