A coalition of Senate Democrats led by Jeff Merkley has demanded answers from Federal Housing Finance Agency (FHFA) Director William Pulte regarding a directive requiring Fannie Mae and Freddie Mac to explore using cryptocurrency holdings directly in mortgage risk evaluations without converting them to U.S. dollars. The senators—including Elizabeth Warren, Chris Van Hollen, Mazie Hirono, and Bernie Sanders—issued a formal letter on July 28, 2025, giving Pulte until August 7 to justify the policy shift.
The lawmakers warned that crypto's extreme volatility, liquidity risks, and susceptibility to fraud could jeopardize borrowers' ability to repay loans, citing instances where borrowers might be unable to liquidate assets during market downturns. They referenced the 2023 banking crisis—where crypto exposure contributed to three bank collapses—and Fannie Mae's 2021 assessment labeling crypto as the "least appealing" collateral for mortgages. Concerns also included potential conflicts of interest, noting Pulte's wife holds up to $2 million in crypto and the Trump family's involvement in crypto ventures.
Currently, FHFA mandates crypto be converted to fiat before mortgage consideration. The senators argued Pulte's reversal lacks transparency and could replicate 2008-style instability, demanding internal communications, risk-assessment protocols, and conflict-resolution plans.