Cathie Wood hails FHFA proposal to include crypto in mortgage rules as a major step toward financial innovation in the housing sector. The ARK Invest CEO praised the move as a gateway to broader economic inclusion for crypto investors traditionally excluded from the mortgage system.
The US Federal Housing Finance Agency is exploring a rule that would allow cryptocurrency holdings, including Bitcoin, to be considered during mortgage qualification. Wood stated this could open homeownership opportunities for millions whose assets lie outside conventional financial structures.
Crypto wealth may gain recognition in mortgage lending
The FHFA has confirmed that it is actively evaluating how digital assets can play a legitimate role in mortgage underwriting. Housing advocate Bill Pulte said the agency is analyzing how crypto holdings might influence mortgage eligibility, suggesting a potential shift from traditional criteria such as income stability and credit scores.
Under current regulations, crypto investors must often liquidate their holdings to qualify for a home loan. This not only creates taxable events but also forces them to exit long-term investment positions. The FHFA’s proposal could allow buyers to keep their Bitcoin while still using it to secure mortgages.
The plan is expected to benefit crypto earners with nontraditional income paths, such as freelancers, digital entrepreneurs, and early adopters who struggle to access traditional credit channels.
Industry leaders support Bitcoin-backed mortgages
Wood is not alone in her support for this proposal. Michael Saylor, chairman of MicroStrategy and a leading voice in the Bitcoin space, has long called for digital assets to be treated as serious financial instruments. He and other crypto advocates argue that lending institutions should no longer ignore digital wealth.
The rule change could help redefine what makes a borrower “creditworthy.” Instead of limiting access to those with conventional income, it may establish a new standard based on modern, decentralized financial holdings. Lenders may soon be encouraged to develop mortgage products that cater to crypto holders without forcing them to liquidate their assets.
Crypto integration could reshape housing finance
Assuming the proposal was adopted, the move may have wider consequences other than the eligibility to mortgages. It could be an indicator of a more significant movement to include cryptocurrency in the general economy of finance. Mortgage offerings based on bitcoin may come to market as well as new forms of digital-asset-linked mortgage-backed securities. It has now become clear that the FHFA is collecting community feedback, yet the ability to attract the attention of crypto leaders and financial industry ones to this idea is indicative of its approval.