A bold federal push to integrate crypto assets into mortgage underwriting is igniting fierce backlash as lawmakers warn of destabilizing shocks across the U.S. housing finance system.
US Senators Warn Crypto May Unleash New Wave of Housing System Shocks
A rising policy shift linking crypto to housing finance has drawn sharp scrutiny from several U.S. lawmakers as concerns grow about volatility risks, regulatory blind spots, and governance conflicts. U.S. Senators Jeffrey Merkley, Elizabeth Warren, Chris Van Hollen, Mazie Hirono, and Bernie Sanders sent a letter on July 24, 2025, to Federal Housing Finance Agency (FHFA) Director William Pulte, demanding detailed information and documentation about his June 25 directive instructing Fannie Mae and Freddie Mac to evaluate unconverted cryptocurrency assets in single-family mortgage underwriting.
Pulte has ordered Fannie Mae and Freddie Mac to begin considering verified cryptocurrency holdings on U.S.-regulated exchanges as eligible assets in mortgage applications. The lawmakers asked FHFA to disclose its full risk analysis, the timeline and process for board approvals, and the criteria for evaluating eligible cryptocurrencies. They also requested a comprehensive list of internal and external meetings held on the topic, including the identities of consulted federal regulators or nongovernmental stakeholders, and the measures in place to detect and prevent conflicts of interest. Citing prior oversight gaps, the letter warned:
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 noted that this directive may reintroduce financial vulnerabilities seen during the 2023 banking failures, where crypto-related exposures played a contributing role.
The lawmakers voiced particular concern about structural governance weaknesses, pointing to Pulte’s dual role as both FHFA Director and Chair of the Enterprises’ Boards—a setup they argue compromises independence. They highlighted that Pulte’s spouse holds up to $2 million in crypto assets and pressed FHFA to clarify whether he has consulted ethics officials or initiated any recusals or divestitures. They demanded assurance that any policy shaping future crypto asset eligibility undergoes rigorous and unbiased oversight.
While calling for transparency, the senators acknowledged the directive’s narrow scope, which limits eligibility to assets held on U.S.-regulated centralized exchanges. They also recognized FHFA’s instruction for the Enterprises to develop independent risk mitigants. Crypto proponents counter that thoughtful inclusion of digital assets could help expand mortgage access, particularly for digitally native borrowers, and bring lending models in step with evolving asset portfolios.
