Crypto Meets the Mortgage Market: What RIAs Should Know About the Fannie and Freddie Shift
New housing guidance brings crypto one step closer to the mortgage market.
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Crypto Meets the Mortgage Market: What RIAs Should Know About the Fannie and Freddie Shift
No two names are more synonymous with the U.S. mortgage market than Fannie Mae and Freddie Mac. These institutions have quietly shaped American housing finance for decades, buying up loans from banks and keeping the mortgage system running. But they’ve never been known as innovators – they operate within narrow regulatory guardrails and follow government signals with precision.
Put simply, Fannie and Freddie don’t lead – they execute. If Washington says “jump,” their response is, “how high?” When the Fed raises rates, they adjust pricing and programs without question. They’ve earned a reputation as the steady hands of the housing finance system – not as trendsetters.
So for Fannie and Freddie to embrace crypto in any capacity, it takes more than an internal policy tweak – it requires a directive from the top, and a deliberate shift in national priorities. That shift just happened.
Last week, Bill Pulte, U.S. Director of Federal Housing, issued this statement:
“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.”
This isn’t just one person making a policy call – it’s part of a broader realignment. Crypto is no longer being sidelined. It’s being invited in.
For context, Fannie Mae and Freddie Mac collectively hold or guarantee over $7.8 trillion in mortgages and mortgage-backed securities – covering nearly 70% of all home loans in the U.S. The American Dream, for most families, passes through these two institutions. And now, for the first time, crypto has a seat at the table.
Until now, crypto holders had few options when applying for a mortgage. Their digital assets weren’t recognized in underwriting – and using them meant liquidating, triggering taxes, and losing long-term upside. Even for sophisticated investors, the message was clear: crypto doesn’t count.
That changes with this directive – but there’s a major caveat. Only crypto held on regulated exchanges will qualify. That means investors who’ve taken security seriously – storing assets offline in self-custody wallets – will now need to transfer funds to a regulated exchange to be considered in the mortgage process.
It’s not ideal. The most secure method of holding crypto is being penalized, and the framework still leaves out major swaths of the crypto economy. But it’s progress – and a major milestone in the integration of digital assets into the financial mainstream.
This move builds on a growing list of institutional signals: JPMorgan now accepts BlackRock’s Bitcoin ETF as collateral. Bank of America is developing its own stablecoin. Circle went public. Coinbase is powering infrastructure for major banks. And all of this follows President Trump’s executive order, “Strengthening American Leadership in Digital Financial Technology.”
For advisors, the message is clear: crypto is no longer speculative fringe – it’s entering core financial infrastructure.
Fannie and Freddie adopting crypto isn’t just symbolic – it’s practical. It begins to normalize the idea that digital assets belong in wealth conversations, not as moonshots, but as structured, reportable, and regulated parts of net worth.
Many clients haven’t stayed away from crypto because they don’t believe in it – they’ve stayed away because it hasn’t felt legitimate. But legitimacy is shaped by institutions, and now the institutions are moving.
When legacy names like Fannie Mae, Freddie Mac, and JPMorgan begin weaving crypto into the fabric of everyday finance, public perception shifts. Crypto becomes less of a curiosity and more of a tool – something that sits comfortably next to equities, gold, and bonds.
Fannie and Freddie are no longer just knocking on crypto’s door – they’re being told to open it. And when the U.S. government eventually announces it owns Bitcoin, it won’t feel radical. It will feel overdue.
Texas Joins Growing List of States Enacting Pro-Bitcoin Legislation
Texas has become the third U.S. state – after Arizona and New Hampshire – to formally authorize the creation of a strategic Bitcoin reserve. Governor Greg Abbott recently signed Senate Bill 21 into law, granting the state the ability to hold Bitcoin as a store of value, similar to gold or land.
What sets Texas apart is that it’s the first state to establish a publicly funded, stand-alone Bitcoin reserve. It will be managed independently of the state treasury under the direction of Comptroller Glenn Hegar – a notable structural departure that signals long-term intent.
The legislation, introduced by Senator Charles Schwertner, reflects the growing institutional recognition of Bitcoin as a high-performing, non-sovereign asset. In parallel, Abbott signed House Bill 4488, which protects the Bitcoin reserve from routine budget reallocation and clarifies its legal standing – even if the state has yet to acquire Bitcoin.
For RIAs and institutional observers, this is more than a headline – it’s another sign of how Bitcoin is being embedded into formal financial systems. With explicit legal protections and a dedicated reserve structure, Texas is positioning itself at the forefront of public-sector crypto adoption.
Circle Internet Group Shares Rally Following Strong Market Debut
Circle, the fintech firm behind the USDC stablecoin, has successfully completed its IPO under the ticker CRCL – marking a major milestone not just for the company, but for the broader digital asset ecosystem.
By Friday’s close, Circle’s stock was priced at $182.88 – a staggering 490% increase from its IPO reference price of $31, which had already exceeded the expected range of $24 to $26. The market’s response underscores strong investor appetite for regulated, infrastructure-focused crypto firms.
Circle’s public debut now places it among the most prominent digital asset companies listed on a U.S. exchange – and has reignited speculation around future IPOs from peers like Kraken, one of the largest U.S.-based crypto exchanges.
The implications are twofold: for investors, Circle’s early performance may validate interest in firms operating at the intersection of regulation and innovation. For policymakers, the company’s successful listing could provide added momentum for stablecoin legislation, including the GENIUS Act – which aims to establish clear federal rules for stablecoin issuers like Circle.
While historical trading data is still limited, the early signal is clear – Circle’s IPO has set a powerful tone for what comes next in the regulated crypto space. CRCL is now one to watch as the public markets begin to price in the future of tokenized finance.
How Blockchain Gave Rise to a New Asset Class
Bitcoin’s emergence as a decentralized digital currency marked the beginning of something much larger. At its core was blockchain technology – a secure, transparent, and decentralized system for recording transactions. That innovation laid the foundation for an entirely new asset class and a broader transformation in digital infrastructure.
Since then, thousands of cryptocurrencies have launched, each with distinct functions. Ethereum introduced programmable smart contracts and decentralized applications. Solana emphasized speed and low transaction costs. Stablecoins like USDC and Tether offer price stability by pegging to the U.S. dollar. Even niche tokens and meme coins have found traction in specific communities.
But blockchain’s impact extends far beyond crypto markets. Industries are applying the technology in increasingly practical ways – from tracking goods in global supply chains and securing patient records in healthcare to enabling tamper-resistant voting systems and verifying digital identities.
For RIAs, understanding blockchain’s expanding role is critical. It’s not just a vehicle for digital assets – it’s becoming a foundational layer of modern finance and enterprise infrastructure. As the space evolves, so will the investment opportunities and client conversations that come with it.
Disclaimer: The information provided by The Crypto Advisor is for educational and informational purposes only and does not constitute financial, investment, or legal advice. The Crypto Advisor is not a registered investment advisor, broker-dealer, or financial planner. Nothing in this email should be interpreted as a recommendation to buy, sell, or hold any financial instrument or investment. Always consult with a licensed financial professional before making any investment decisions.