Four Senate Democrats and one Independent are pressing Federal Housing Finance Agency (FHFA) Director William J. Pulte to justify his recent directive calling for Fannie Mae and Freddie Mac to explore the use of cryptocurrency assets in mortgage underwriting.
“Expanding underwriting criteria to include the consideration of unconverted cryptocurrency assets could pose risks to the stability of the housing market and the financial system,” the senators wrote in a letter sent last week.
The letter was sent by Sens. Jeff Merkley (D-OR), Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), Mazie Hirono (D-HI), and Bernie Sanders (I-VT), who warn that such a move could destabilize the housing market and introduce risks to borrowers.
The lawmakers cited crypto’s volatility, liquidity issues, and susceptibility to scams and cyber theft as key concerns, arguing that:
- The FHFA directive contradicts existing federal mortgage standards, which only permit crypto assets once converted to U.S. dollars with appropriate documentation;
- A borrower holding crypto reserves might not be able to convert assets to cash at the needed time or price, increasing default risk; and
- Crypto assets are often vulnerable to fraud, theft, and hacking — with limited recourse for consumers.
The senators also raised potential ethical conflicts surrounding the FHFA directive, pointing to Pulte’s dual role as both FHFA Director and Chairman of the two government-sponsored enterprises’ boards.
The letter further notes:
- Reports that Pulte’s spouse holds up to $2 million in crypto assets;
- What the senators call FHFA’s “lack of transparency” about the directive’s development, including risk analysis, stakeholder input, or intended timeline; and
- The GSEs should consult with independent regulators or experts free of crypto-related financial conflicts.
Noting past failures involving crypto-exposed banks in 2023, the senators said the directive echoes earlier regulatory lapses. They seek responses to a series of questions by August 7, 2025, including whether the FHFA has conducted a formal risk analysis or consulted third-party market participants like mortgage insurers or MBS investors.
“Any change to Enterprise policies can have market-shifting effects,” they concluded, stressing the need for oversight and public clarity.
When FHFA Director Pulte issued the directive in late June, he indicated there has already been "significant" study of the matter.
“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world,” Pulte wrote, “today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.”
“I want people who own cryptocurrency to be able to buy homes like everyone else. I believe cryptocurrency is an asset," Pulte added in a follow-up post on X: I believe Americans should be able to use their crypto if they want to — it's time the housing system caught up.”
