The United States Federal Housing Finance Agency (FHFA) is exploring the possibility of including cryptocurrency holdings in mortgage qualification assessments. FHFA Director William Pulte highlighted the agency's intent to study the usage of cryptocurrencies in this context. Previous complications arose from guidance issued by the US Securities and Exchange Commission (SEC), which mandated that companies disclose client-held crypto assets as liabilities. However, the SEC recently rescinded this guidance, paving the way for greater financial integration of cryptocurrencies. While crypto-backed mortgages currently exist through specialized firms, the new FHFA guidance may lead to traditional banks offering similar products. These mortgages typically allow borrowers to use digital assets as collateral, but require high collateralization. A report from November 2024 noted a surge in borrowing among lower-income households in areas with significant crypto exposure, as individuals seek financing options without liquidating their digital assets. This trend is especially relevant as firms like Ledn offer Bitcoin-backed loans, appealing to high-net-worth individuals who may not qualify under traditional financing criteria.

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