The Federal Housing Finance Agency (FHFA) under the director William Pulte, ordered Fannie MAE (Federal National Drilling Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) to consider cryptocurrency in their risk assessments for unifamilial loans. Pulte noted in an X post that the decision was based on an intense examination and the desire to observe the candidacy of President Donald Trump to facilitate the general adoption of digital assets in the United States.
“The FHFA orders this company by this company to prepare a proposal to take into account the cryptocurrency as an actor for reservations in their assessment of the risk of respective unifamilial mortgage, without conversion of said cryptocurrency into American dollars,” noted the order.
According to order, Fannie Mae and Freddie Mac should only consider cryptographic assets that are exchanged and stored in centralized exchanges regulated in the United States led by Coinbase Global Inc. (Nasdaq: Coin) and Robinhood Markets Inc. (Nasda: Hood).
Impact of the FHFA orders on cryptographic assets
FHFA ordinances on Fannie MAE and Freddie Mac to consider cryptographic assets in their risk assessments for unifamilial loans have drawn significant attention in the web3 space. According to Michael Saylor, co-founder and president of Strategy, the decision of the FHFA is a decisive moment for the institutional adoption of Bitcoin.
The notable proliferation of the new legislation and regulation of cryptography has marked a major inflection point where traditional financial institutions have gained confidence to adopt digital assets.
After the announcement, Bitcoin Price increased by 1% more Wednesday to negotiate itself to around $ 107,748 during the American session in the middle of the North. However, the Bitcoin price faces a short-term lower feeling unless the flagship piece closes regularly above $ 110,000 in the coming days.
