A bold federal push to integrate cryptocurrency assets into mortgage underwriting is sparking controversy as lawmakers raise concerns about potential destabilizing effects on the U.S. housing finance system.
US Senators Express Alarm Over Crypto’s Impact on Housing System Stability
The recent shift in policy linking cryptocurrency to housing finance has attracted intense scrutiny from a group of U.S. senators who are worried about the risks of volatility, regulatory gaps, and governance challenges. Senators Jeffrey Merkley, Elizabeth Warren, Chris Van Hollen, Mazie Hirono, and Bernie Sanders penned a letter on July 24, 2025, to Federal Housing Finance Agency (FHFA) Director William Pulte, seeking detailed information and documentation regarding his directive instructing Fannie Mae and Freddie Mac to consider unconverted cryptocurrency assets in single-family mortgage underwriting.
Pulte has directed Fannie Mae and Freddie Mac to assess verified cryptocurrency holdings on U.S.-regulated exchanges as eligible assets in mortgage applications. The senators have requested FHFA to provide a comprehensive risk analysis, details on board approvals, criteria for evaluating eligible cryptocurrencies, and information on meetings and consultations with regulators and stakeholders. They cautioned against the potential destabilization of the housing market and financial system, citing risks similar to those observed during the 2023 banking crises, where crypto-related exposures played a role.
Expanding underwriting criteria to include unconverted cryptocurrency assets may pose risks to housing market stability and the financial system.
The lawmakers expressed concerns about governance issues, highlighting Pulte’s dual role as FHFA Director and Chair of the Enterprises’ Boards, which they believe compromises independence. They raised questions about potential conflicts of interest, especially considering Pulte’s spouse’s significant crypto holdings, and urged FHFA to ensure unbiased oversight in shaping policies related to crypto asset eligibility.
While acknowledging the directive’s limitations, which focus on assets held on U.S.-regulated centralized exchanges, the senators recognized the potential benefits of including digital assets in mortgage underwriting. Proponents argue that incorporating cryptocurrencies could enhance access to mortgages, particularly for digitally savvy borrowers, and align lending practices with evolving asset trends.