Two significant developments in the US regulatory landscape are shaping the future of cryptocurrency adoption in traditional finance. On January 16, Pennsylvania-based lender Newrez announced plans to accept certain cryptocurrency holdings as collateral for mortgage applications starting in February. This move follows a June 2025 directive from the US Federal Housing Finance Agency (FHFA), which ordered government-sponsored enterprises Fannie Mae and Freddie Mac to develop plans for recognizing crypto in loan applications.
The FHFA's directive, issued by Director Bill Pulte, aimed to expand homeownership opportunities, particularly for younger generations. Pulte stated in a CNBC interview, "We are doing everything we can to increase affordability. One of the reasons that we are doing this with regard to crypto is because crypto has an enormous opportunity to help with [affordability]." The policy has political dimensions, with Pulte noting it was partly "in keeping with President Trump's vision to make the United States the crypto capital of the world."
However, significant challenges remain. Lenders are risk-averse, and regulatory clarity is incomplete. Crypto assets must be held on US-regulated exchanges, and Fannie Mae and Freddie Mac must implement risk mitigation measures. Industry experts like Charles Whalen, chairman of Whalen Global Advisors, note that acceptance is currently confined mostly to "private label" or "jumbo markets" and that "There are some lenders right now that are willing to do business based on Bitcoin. Not so much the other tokens." Borrowers should also expect to "take a haircut" on their crypto valuations to account for volatility.
Simultaneously, the regulatory body overseeing much of this activity faces a capacity crisis. The U.S. Commodity Futures Trading Commission's (CFTC) inspector general has identified digital asset regulation as a top risk for fiscal year 2026. The warning comes as the agency's workforce contracted by 21.5%—from 708 employees in 2024 to just 556 in 2025—while legislative proposals circulate to grant the CFTC broader authority over digital asset spot markets.
The report highlights critical shortages in personnel, technology, and data infrastructure needed to monitor complex, decentralized markets. Former CFTC commissioner Jill Sommers warned, "A regulatory body cannot expand its mandate while shrinking its resources. This creates a dangerous gap where markets operate without sufficient surveillance." This staffing disparity is stark compared to the Securities and Exchange Commission, which maintains approximately 4,500 employees.
The political landscape adds further complexity. While Republican lawmakers, like Wyoming Senator Cynthia Lummis who introduced the 21st Century Mortgage Act in July 2025, seek to codify crypto mortgage policies, top Democrats including Senators Elizabeth Warren and Bernie Sanders have opposed the FHFA's move, claiming it prioritizes politics over financial system risks.
