National regulators are waking up to Bitcoin’s potential. In this newsletter, we’ll cover an important regulatory change to the mortgage industry and where this fits in the big picture for Bitcoin.

🏠 Bitcoin could help homebuyers get a mortgage

This past week, the Federal Housing Finance Agency (FHFA), issued a directive requiring America’s largest mortgage liquidity providers (Fannie Mae and Freddie Mac) to prepare their businesses to count bitcoin as an asset for a mortgage.

This move is a significant step forward for bitcoiners, making it easier to use bitcoin savings as a legitimate asset in major life decisions.

Why does this matter? Bitcoin won’t revolutionize the world overnight. Instead, it’s transforming our financial system one step at a time. Mortgages are a critical aspect of finance that many Americans interface with. Bitcoin holdings becoming a viable option for mortgages is huge.

Will bitcoin on River count for a mortgage?

At River, we welcome this directive and view it as a positive step forward.

It appears that the necessary documentation to apply may be based off account statements on an exchange. As a U.S.-based financial institution that publishes monthly Proof of Reserves, we believe River is well-positioned to be among the exchanges whose balances could potentially qualify for mortgage application considerations. Additionally, we are hopeful that self-custody solutions will also be included in the final criteria.

But we won't know exactly what qualifies until the proposals from Fannie Mae and Freddie Mac are considered and approved by FHFA. We hope to have more to announce as this develops!

What’s important to remember is that this directive is a small part of a much larger story: bitcoin’s emergence as money.

❓ Is Bitcoin becoming money?

Bitcoin is filling the gap that dollars have left open for decades. US dollars are a reliable money for transacting, but can’t be used for savings. Inflation steadily erodes the purchasing power of dollar wealth over time.

Bitcoin was created to do exactly what dollars can’t. With a fixed supply and predictable, transparent protocol, Bitcoin is made for savings.

That’s how bitcoin is becoming money. Individuals, businesses, and institutions worldwide increasingly choose bitcoin for their savings. As this happens, expect to see more progress such as bitcoin’s inclusion in mortgage applications. 

As adoption grows and policymakers gradually move toward broader acceptance, bitcoin is on the path to becoming the world's leading reserve asset.