The FHFA wants to find ways to include crypto in how it checks mortgage risks.
- FHFA is exploring how crypto assets could count in mortgage checks.
- Self-custodied crypto might be accepted if clearly verified.
- A flexible system could help both homeowners and the market.
Crypto Could Help Homebuyers
The Federal Housing Finance Agency (FHFA) is studying how cryptocurrency can be part of mortgage risk reviews. If approved, this could allow people to use their digital assets as part of their mortgage application without selling them first. This is big news for long-term crypto holders who want to buy a home.
Confusion Around the FHFA’s Statement
Some people said the FHFA wants crypto to be stored on a US-regulated exchange only. But the text just says assets must be “capable of being stored” on one. This means it must be possible to verify them, not that they must be held there. The main focus is on safety and proof, not where the crypto is kept.
Self-Custody is Part of the System
In crypto, many people use self-custody to store their coins. This means they keep control of their wallets instead of using a company. When done right, it can be safer and easier to track. It also removes a risk that comes from companies losing funds or shutting down. Tools already exist to prove wallet balances and history, even for self-held wallets.
A Fair Framework is Needed
Experts believe a good system should allow both self-custodied and held-on-exchange crypto. The main point should be if the asset is verifiable and useful. There could also be limits set to how much of the down payment or reserve funds can be in crypto. Asset value discounts should be used to account for price swings.
Future Crypto Policy Must Be Smarter
The FHFA has a chance to make the housing market better by accepting crypto, but it must avoid old ideas that don’t fit. Both self-custody and centralized storage should be seen as real options. With better education on how crypto works, smarter rules can be made that work for everyone.
Source: cointelegraph.com
