FHFA Faces Scrutiny Over New Crypto Mortgage Proposal

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FHFA Faces Scrutiny Over New Cryptocurrency Mortgage Proposal

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 28, 2025

Key Takeaways

Senate Democrats are pressing FHFA head William Pulte to explain his plan to include crypto in mortgage risk proposals;
Lawmakers warned that crypto’s volatility and liquidity issues could increase the risk of loan defaults;
Concerns were raised about potential conflicts of interest tied to Pulte’s family and Trump-linked crypto projects.

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FHFA Faces Scrutiny Over New Cryptocurrency Mortgage Proposal

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A group of Democratic senators has asked the head of the Federal Housing Finance Agency (FHFA), William Pulte, to explain his recent decision to explore whether cryptocurrency can be used in mortgage approvals.

In a letter sent on July 25, the senators asked for more details on how this plan would work and what risks it might create for the US housing market. Pulte has been asked to reply by August 7.

The senators, Jeff Merkley, Elizabeth Warren, Chris Van Hollen, Mazie Hirono, and Bernie Sanders, raised concerns about the impact of using crypto assets without converting them to dollars.

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On June 25, Pulte instructed Fannie Mae and Freddie Mac to come up with a way to include crypto in their loan risk assessments for single-family homes.

Fannie Mae and Freddie Mac, both overseen by the FHFA since the 2008 financial crisis, currently do not allow crypto to be part of mortgage decisions unless it is first turned into US dollars.

The senators argued that crypto’s history of price swings and limited liquidity could put borrowers at greater risk. If the value of a digital asset declines or if it cannot be easily converted into cash, homeowners may struggle to keep up with their loan payments.

Another issue raised was the possibility of personal or political influence. The lawmakers mentioned that members of President Donald Trump’s family have ties to crypto projects, including tokens, mining businesses, and digital collectibles. They said this connection could affect the direction of proposals made by Fannie Mae and Freddie Mac.

The senators also noted that Pulte’s spouse holds as much as $2 million in crypto, according to financial disclosures. They said this could create a conflict of interest, especially since Pulte also chairs the boards of both mortgage companies.

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