Administration of Trump Contemplates Use of Cryptocurrencies for 401(k)s and Mortgage Assets
The Trump administration has unveiled a comprehensive plan to integrate cryptocurrencies into key parts of the U.S. financial system, with a focus on 401(k) retirement plans and mortgage lending.
President Donald Trump is expected to issue an executive order that will allow 401(k) plans to include digital assets like Bitcoin as investment options, broadening retirement investing opportunities beyond traditional stocks and bonds.
In a significant shift, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac, the major mortgage finance institutions, to develop policies that consider borrowers’ cryptocurrency holdings as assets that can back mortgage loans.
The broader framework for these changes was outlined in a report released by the Trump administration's Digital Asset Market Policy Working Group. The report calls for leveraging existing federal regulations to clarify and streamline rules around digital asset trading and encourages Congress to pass the "Digital Asset Market Clarity Act."
The working group also supports fostering innovation in decentralized finance (DeFi) and contemplates strategic initiatives such as a national digital assets stockpile. The administration’s aim is to position the U.S. as a global leader in blockchain technology and initiate what it terms a “crypto golden age.”
However, the plan has faced opposition mainly from Democratic senators, including Elizabeth Warren, who express concerns about the volatility of cryptocurrencies potentially undermining financial stability, particularly with their use as mortgage collateral.
The report, which is set to be published on July 30, may include details on the development of a federal regulatory framework governing digital assets, the bitcoin strategic reserve, crypto tax policies, and other matters. The Presidential Working Group on Digital Assets Markets, established by Trump’s January 23 executive order, will release the report.
William Pulte, director of the Federal Housing Finance Agency, has announced a plan for mortgages that involves considering a borrower's crypto holdings as assets backing up their mortgage. This marks a significant step towards recognizing digital assets in mortgage underwriting.
The report is expected to provide additional details on the administration’s policy to support the responsible growth and use of digital assets across all sectors of the economy. The plan, if implemented, will significantly alter the federal regulatory framework by integrating digital assets into mainstream financial products and establishing clearer oversight, potentially accelerating widespread adoption while raising new regulatory and stability considerations.
- The Presidential Working Group on Digital Assets Markets, established by Trump’s January 23 executive order, is set to release a report on July 30, outlining the administration's plan to integrate digital assets into various sectors of the economy, including 401(k) plans and mortgage lending.
- The working group supports fostering innovation in decentralized finance (DeFi) and contemplates strategic initiatives such as a national digital assets stockpile, with the aim of positioning the U.S. as a global leader in blockchain technology and initiating a "crypto golden age."
- President Donald Trump is expected to issue an executive order allowing 401(k) plans to include digital assets like Bitcoin as investment options, broadening retirement investing opportunities beyond traditional stocks and bonds.
- In a significant shift, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop policies that consider borrowers’ cryptocurrency holdings as assets that can back mortgage loans, marking a significant step towards recognizing digital assets in mortgage underwriting.
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