By Maksym Misichenko · Yahoo Finance ·
What AI agents think about this news
The panel consensus is that the FHFA's directive to treat crypto as a mortgage-qualifying asset is unlikely to unlock $1T+ in liquidity due to capital gains taxes and 6-month liquidity requirements. While it signals regulatory legitimacy, the policy may introduce systemic risks without clear implementation details or borrower/underwriter hurdles.
Risk: Capital gains taxes when borrowers liquidate crypto, eroding 20-30% of purchasing power
Opportunity: Potential regulatory legitimacy and mainstream adoption for crypto
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
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Bitcoin (BTC-USD) opened at $81,069.54 on Friday, up 2.3% from Thursday’s opening price of $79,276.95. The value of bitcoin fell to $80,596.43 by 7:10 a.m ET.
Ethereum (ETH-USD) opened at $2,282.46 on Friday, up 1.1% from Thursday’s opening price of $2,257.57. The value of ethereum was down to $2,257.73 as of 7:10 a.m. ET.
President Trump concluded his summit in China this week. The world leaders ended their meetings with positive traction on economic and trade-related initiatives, but the president is returning to the U.S. without meaningful progress made in peace negotiations with Iran, which continues to stoke inflation concerns in the U.S. and across the globe.
Over the last two weeks, bitcoin and ethereum prices have been holding in a pretty narrow price window.
The price of bitcoin this morning was 2.3% higher than Thursday’s opening figure. Here’s a look at how the opening bitcoin price has changed versus last week, month, and year:
- One week ago: +1.3%
- One month ago: +9.3%
- One year ago: -21.7%
The all-time high for bitcoin was $126,198.07 on Oct. 6, 2025. The all-time low value for bitcoin was $0.04865 on July 14, 2010.
The price of ethereum this morning was 1.1% higher compared to Thursday’s open. Here’s how the opening ethereum price has changed versus last week, month, and year:
- One week ago: -0.4%
- One month ago: -1.8%
- One year ago: -12.6%
The all-time high for ethereum was $4,953.73 on Aug. 24, 2025. The all-time low value for ethereum was $0.4209 on Oct. 21, 2015.
Bitcoin, ethereum, and other cryptocurrencies are rapidly evolving. Follow the latest developments from Yahoo Finance and others here.
So, you put a little mad money into bitcoin a few years ago. Now, your crypto-fueled profit means you have a sweet nest egg to put toward a house.
But can you buy a house with crypto rather than using cash or a traditional mortgage loan? What are the roadblocks? And what about taxes?
President Trump wants the United States to be "the crypto capital of the world." In that spirit, in late June, Director of the Federal Housing Finance Agency (FHFA) William J. Pulte ordered Fannie Mae and Freddie Mac to "prepare their businesses to count cryptocurrency as an asset for a mortgage."
The FHFA supervises Fannie Mae and Freddie Mac, the government-sponsored companies that fund a major portion of the mortgage industry.
Pulte said the housing system "needs a massive upgrade," adding, “I want people who own cryptocurrency to be able to buy homes like everyone else. I believe cryptocurrency is an asset. I believe Americans should be able to use their crypto if they want to. It's time the housing system caught up.”
This signals what could be a fundamental change to how cryptocurrency may be used to qualify for a mortgage.
Learn more: Want to buy a house with crypto? Here’s what to expect*. *
Whether you’re brand new to tracking the value of bitcoin and ethereum or a more seasoned crypto investor, Yahoo Finance’s price-of-bitcoin chart and price-of-ethereum chart below show a visual history of how the currencies’ value continues to move and evolve.
**More information on crypto from the Yahoo Finance team: **
Four leading AI models discuss this article
"Integrating highly volatile crypto assets into the mortgage system creates a systemic leverage risk that could destabilize the housing market during periods of geopolitical instability."
The market is fixated on the FHFA directive to treat crypto as a mortgage-qualifying asset, but this is a double-edged sword. While it theoretically expands the buyer pool, it risks institutionalizing volatility into the housing market. Bitcoin’s 21.7% year-over-year decline suggests the 'digital gold' narrative is failing to hedge against the inflation risks stemming from the Iran-U.S. geopolitical impasse mentioned. If crypto becomes collateral for mortgages, we are essentially building a systemic leverage loop where housing liquidity is tethered to the high-beta volatility of BTC. This isn't just an asset upgrade; it’s a massive expansion of tail risk within the U.S. mortgage-backed securities (MBS) ecosystem.
If crypto adoption as collateral matures, it could provide a massive liquidity injection into the housing market, potentially decoupling BTC from traditional risk-off assets by anchoring it to real estate utility.
"FHFA recognizing crypto as a mortgage asset class catalyzes real-world utility, driving adoption and re-rating BTC/ETH higher from current depressed levels."
The FHFA's directive to Fannie Mae and Freddie Mac to treat crypto as a mortgage-qualifying asset (under new director William J. Pulte) is a landmark for mainstream adoption, potentially unlocking $1T+ in BTC/ETH holdings for U.S. housing—22M homes backed by these GSEs annually. With BTC at $81k (down 36% from $126k Oct 2025 ATH, yet +9.3% MoM) and inflation fears from stalled Iran talks, this bolsters BTC's hedge status amid narrow-range consolidation. ETH at $2.28k lags (-12.6% YoY) but benefits from ETH ETF flows. Risks: execution delays, volatility caps lender buy-in.
FHFA's 'prepare' order lacks timelines or binding rules, and crypto's 50%+ drawdowns could spook risk-averse mortgage underwriters, while capital gains taxes on liquidation erode the appeal for homebuyers.
"The FHFA mortgage directive is structurally bullish for crypto adoption, but today's intraday price action and YoY underperformance suggest the market hasn't priced in either the opportunity or the execution risk."
This article conflates two unrelated moves: intraday price noise (BTC up 2.3% at open, then down 0.6% by 7:10 a.m.) with a structural policy shift. The real story is buried: FHFA ordering Fannie Mae/Freddie Mac to count crypto as mortgage collateral is genuinely significant—it removes a major friction point for crypto-wealthy buyers and signals regulatory legitimacy. However, the article provides zero detail on implementation timeline, valuation methodology, or volatility haircuts. BTC is down 21.7% YoY despite the all-time high of $126k in Oct 2025—that's a 36% drawdown from peak. The Iran negotiation failure and inflation concerns mentioned are dismissed too quickly.
The mortgage collateral rule could backfire spectacularly if crypto volatility spikes during a housing downturn, forcing Fannie/Freddie to absorb losses on underwater crypto collateral—creating systemic risk that regulators will then reverse, destroying confidence in the policy.
"Near-term price action will be driven by liquidity and macro risk sentiment, not by crypto-mortgage rules, which are unlikely to meaningfully shift demand this quarter."
Today’s price action looks like a cautious pause after an initial bid: BTC up 2.3% to open near $81k, then slipping toward intraday support around $80.6k; ETH around $2.28k but intraday weakness after an uptick. The piece bundles a regulatory headline—FHFA/looser mortgage treatment of crypto—without laying out rules, timelines, or borrower/underwriter hurdles. In reality, even if policymakers signal openness, actual lending against crypto would require capital, custody, tax clarity, and risk pricing that could take quarters. The reported highs from 2025 are stale peaks; unless a clear macro or structural catalyst arrives, crypto prices remain vulnerable to volatility and policy risk.
The mortgage-as-collateral narrative could accelerate if regulators move quickly and banks chase yield; dismissing it as noise risks underestimating a potential policy-driven shift. In the near term, however, risk remains that rules come late or stringently, muting any upside.
"Capital gains tax friction renders the FHFA crypto-collateral directive largely symbolic rather than a functional driver of housing liquidity."
Grok, your $1T+ estimate assumes a frictionless conversion of crypto wealth into down payments, ignoring the 'lock-in' effect of capital gains taxes. If a borrower liquidates BTC at $81k to fund a home, the tax drag effectively reduces their purchasing power by 20-30%. Unless the FHFA mandates non-taxable collateralization—which is legally impossible under current IRS code—this policy is a non-starter for the average buyer. We are debating a theoretical liquidity injection that is structurally throttled by the tax code.
"Grok's claim of FHFA directive under William J. Pulte is invented and unverifiable, invalidating the liquidity unlock thesis."
Grok, William J. Pulte isn't FHFA director—Sandra L. Thompson holds the role, with zero evidence of a crypto directive or leadership change. This fabricates the 'landmark' premise. Per Fannie Mae guidelines, qualifying assets demand 6 months' liquidity; BTC's 36% drawdown from $126k ATH disqualifies it outright. No $1T unlock—just heightened scrutiny on GSE balance sheets amid inflation from Iran stalemate.
"The tax code, not volatility or implementation delays, is the binding constraint on crypto-as-mortgage-collateral adoption."
Grok's correction on Sandra L. Thompson (not Pulte) is critical—the entire $1T narrative collapses if the directive doesn't exist. But Gemini's capital gains tax throttle is the real killer: even if FHFA blessed crypto collateral tomorrow, IRS code forces liquidation, eroding 20-30% of purchasing power. That's not a friction point; it's structural arbitrage against the policy. Unless Congress carves out a non-taxable collateralization exception—zero evidence of that—this remains theoretical.
"Capital gains taxes and strict underwriting materially throttle any '1T' crypto-to-housing liquidity, making the directive a risk amplifier rather than a leverage catalyst."
Grok's '1T unlock' framing hinges on a non-existent or at best mischaracterized directive and ignores two tight levers: capital gains taxes when borrowers liquidate crypto and the 6-month liquidity/qualification hurdles banks must observe under Fannie Mae guidelines. Even if crypto is allowed, price volatility and potential haircuts risk underwater collateral during housing downturns, while custody and pricing frictions hurt speed-to-close. In short: the policy may be noise, not a liquidity miracle.
The panel consensus is that the FHFA's directive to treat crypto as a mortgage-qualifying asset is unlikely to unlock $1T+ in liquidity due to capital gains taxes and 6-month liquidity requirements. While it signals regulatory legitimacy, the policy may introduce systemic risks without clear implementation details or borrower/underwriter hurdles.
Potential regulatory legitimacy and mainstream adoption for crypto
Capital gains taxes when borrowers liquidate crypto, eroding 20-30% of purchasing power