Bitcoin (BTC-USD) may be inching toward mainstream mortgage finance after U.S. housing regulator Bill Pulte said the Federal Housing Finance Agency will examine how cryptocurrency holdings could factor into mortgage eligibility; the move comes as the U.S. housing market struggles with slumping loan originations and high interest rates.

Pulte’s June 23 post on X signaled openness to integrating digital assets into the mortgage system; he argued that rethinking collateral requirements could help unlock homeownership, particularly as traditional credit metrics exclude millions of crypto-holding Americans.

Mortgage originations plummeted to near-record lows in 2024 and remain weak in 2025; supply constraints, elevated rates, and investor buying have pushed homeownership out of reach for many. Crypto-backed loansoffered by boutique lenders like Milo and Strikehave remained niche, often focused on second homes or investment properties.

A broader endorsement from the FHFA could reshape that landscape. In 2024, the Federal Housing Administration issued more than $230 billion in single-family loans; if crypto holdings become acceptable collateral, retail investors could gain a powerful new path to homeownership.

Bitcoin advocates argue the asset’s transparent custody and liquidity make it ideal for regulated lending. Mitchell Askew of Blockware said Bitcoin’s blockchain-based structure is perfect collateral, while CJ Konstantinos of People’s Reserve called the move a no brainer to derisk mortgage-backed securities.

Still, experts caution that crypto’s volatility presents new risks for lenders and regulators. With 20% of Americans now owning cryptomost with holdings under $50,000any shift to recognize it within federal housing programs would be a major milestone in Bitcoin adoption.

This article first appeared on GuruFocus.