The U.S. Could Soon See Bitcoin Mortgages & Stablecoin Regulations

We have exciting news from the Federal Housing Finance Agency: William J. Pulte, Director of the U.S. FHFA, ordered Fannie Mae and Freddie Mac to use Bitcoin and other digital assets as collateral for mortgages. Great news for anyone looking to buy a house with Bitcoin! 

At the same time, the U.S. Senate passed the GENIUS Act, which will regulate the use of stablecoins in the future. Additionally, there is the Market Structure Bill, which will supplement the matter at hand. The House will now vote on both Bills and, if they are successful, it could usher in a new era in digital asset regulation and adoption in the U.S. 

And last but not least, we also have some news about another Bitcoin treasury company, founded and led by my friend Anthony Pompliano. He made headlines with one of the largest fundraising rounds in a $1 billion merger to establish ProCap BTC.

The U.S. Federal Housing Finance Agency Is Being Ordered to Recognize Bitcoin & Digital Assets as Collateral for Loans 🏡

Bitcoin is the hardest money on earth. 

That also makes it an excellent collateral asset (at least, in my opinion). 

Actually, there are plenty of people who share that view, as we can see from the most recent headlines coming from the U.S. Federal Housing Finance Agency (FHFA). 

They want you to be able to use your Bitcoin as collateral for your mortgage.  

Earlier last week, the FHFA ordered Fannie Mae and Freddie Mac, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, to recognize Bitcoin and other digital assets as part of borrower reserves for mortgages. 

Why is this a big deal? 

Well, Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) and key players in the U.S. housing market. If they take something seriously, everyone in that market does. 

William J. Pulte, the U.S. Director of Federal Housing at the FHFA, stated that his agency will work closely with the White House to utilize Bitcoin and digital assets as collateral for mortgages. 

With this order, investors who hold Bitcoin or other digital assets may soon be able to use their favorite cryptocurrency to buy a house. 

One of the most popular counterpoints to Bitcoin has always been, “But can you buy something with it?” Yeah, your next home!

I’m incredibly bullish about this and looking forward to seeing how fast Fannie Mae and Freddie Mac will react. 

The U.S. Senate Passes the GENIUS Act and Lays the Groundwork for Stablecoin Regulation 🇺🇸

The current administration has been very public about turning the U.S. into a global hub for crypto and Bitcoin, whether that’s through the announcement of a strategic Bitcoin reserve or the legislative bodies. 

This month, we witnessed an exciting chapter in the history of Bitcoin and digital asset adoption in the U.S. with the GENIUS Act. 

The Senate passed a bill proposed by Senators Bill Hagerty and Cynthia Lummis, laying the groundwork for the regulation of stablecoins. 

Here's what this legislation actually does: It sets clear rules on who gets to issue stablecoins, mandates full 1:1 backing with U.S. dollars and other liquid assets, and puts issuers under the watchful eyes of both federal and state regulators. 

But here's the real kicker: the Act officially confirms that stablecoins are NOT securities.

The endgame? 

Consumer protection, financial stability, and most importantly, paving the way for mass stablecoin adoption as digital money within the U.S. financial system. 

But that’s not all! We also have the Market Structure Bill from last month, which is an additional legislation that would enable the integration of digital assets into the traditional financial system. 

Both bills are now up for vote in the House and Senate, with potential approvals further down the line in the coming months. 

That’s not only great news for investors, but also for developers. The industry can prosper and bring brilliant ideas to life, which is something we weren’t able to do before. 

Under the previous administration, we witnessed a significant crackdown on digital assets, primarily through actions such as Operation Choke Point 2.0, which targeted or de-banked digital asset providers. 

Instead of embracing one of the biggest opportunities in modern times, they decided to crack down and push crypto innovation out of the U.S. 

But that looks like it’s a thing of the past now. 

With the GENIUS Act and Market Structure Bill, we can leverage emerging technologies, support Bitcoin developers, and utilize stablecoins as a bridge between the traditional and digital worlds of finance. 

ProCap BTC Is the Latest Bitcoin Treasury Company and Starts With a Bang! 💥

My friend Anthony Pompliano is at the center of attention for the latest news of today’s issue. 

Not only does he host a great podcast (where yours truly has been on 😎), but he’s now also stepping into the world of Bitcoin treasury companies. 

Two weeks ago, he announced that he’s taking his company, ProCap BTC, public through a $1 billion merger with Columbus Circle Capital Corp I (CCCM), in a special-purpose acquisition company (SPAC) sponsored by an affiliate of Cohen & Company.

Just a few days later, he doubled down on his promise to develop new financial services for the Bitcoin industry and Wall Street by announcing a fundraising round with $550 million in preferred equity and $225 million in convertible notes just before the merger deal closed. 

According to Pomp, the largest initial funding round for a public Bitcoin treasury company marked a key moment in institutional adoption. 

As of the time of writing, the company holds 4,932 BTC and aims to hold up to $1 billion in Bitcoin on its balance sheet. If that were the case, ProCap BTC’s Bitcoin position would be one of the largest initial Bitcoin treasuries for a public company out there. 

Your fellow stacker in Sats, 

Patrick Lowry

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.