Crypto-Backed Mortgages Approved as Fed Slashes Rates

• Borrowers can now use regulated cryptocurrency holdings for home loan qualification.
• The Federal Reserve reduced rates, citing inflation concerns and labor market softness.

On June 25, 2025, Forbes reported that the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to establish guidelines allowing cryptocurrency holdings as a valid asset for mortgage applications. This regulation enables borrowers to use assets like Bitcoin when applying for conventional home loans without converting them to fiat currency first. The directive aligns with government efforts to position the U.S. as a global leader in the cryptocurrency market.

The guidelines stipulate that lenders can only consider cryptocurrency held on U.S.-regulated exchanges, ensuring regulatory oversight. Additionally, lenders must account for the inherent volatility of cryptocurrencies when assessing borrower eligibility. This approach aims to balance innovation with risk mitigation in mortgage underwriting practices.

On September 17, 2025, Fidelity Investments and The Guardian reported that the Federal Reserve cut the federal funds rate by 25 basis points, lowering the target range to 4.0%–4.25%. The decision was the first rate reduction since December 2024 and reflects efforts to manage inflation while addressing weakening labor market conditions.

Federal Reserve officials highlighted the possibility of two additional rate cuts before the end of 2025. The move underscores a strategy aimed at stimulating economic growth amid slowing consumer demand, despite concerns about inflationary pressures.

As of September 18, 2025, 15:12 UTC, Bitcoin (BTC) is trading at $117,615.38, with a 1.66% increase in 24-hour trading volume, according to CoinMarketCap.