The directive, which came into effect on Wednesday, was issued by William J. Pulte, the present director of the Federal Housing Finance Agency (FHFA). The FHFA has been supervising Fannie Mae and Freddie Mac since 2008, post the financial crisis that led to both institutions being placed under government conservatorship.

Pulte stated that the decision to include cryptocurrencies in the mortgage risk assessment process was taken “after significant studying” and is in line with President Trump’s objective of establishing the United States as the global crypto capital.

This decision implies that cryptocurrencies will now be deemed a reserve asset for loan borrowers without the need to convert these assets into US dollars, a requirement in the past. Fannie Mae and Freddie Mac have been instrumental in sustaining the US housing market post the subprime mortgage crisis, by purchasing mortgages from lenders, which in turn enables lenders to issue more loans.

Further information on this developing story will be updated as it becomes available.

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