FHFA Allows Bitcoin as Mortgage-Eligible Asset; XRP’s Status Uncertain

The Federal Housing Finance Agency (FHFA) has issued a directive allowing mortgage liquidity providers to consider cryptocurrencies as part of a borrower’s asset portfolio during mortgage evaluations. This policy shift enables homebuyers to count cryptocurrency holdings on US-regulated exchanges without converting them to U.S. dollars.

Key Points

Fannie Mae and Freddie Mac have been instructed to prepare proposals for this new assessment method.
The FHFA aims to align with initiatives promoting the U.S. as a leader in the crypto space.
Market volatility must be accounted for, along with strong risk-based adjustments.
Bitcoin is expected to benefit the most due to its established presence and liquidity.
Uncertainty remains regarding XRP's inclusion due to its regulatory history.
The directive does not specify eligible cryptocurrencies, potentially opening the door for others like XRP and Ethereum.
XRP is already being used for property purchases in markets outside the U.S., such as Japan and Dubai.

Bitcoin