TLDR
- Trump administration planning executive order to allow cryptocurrencies in 401(k) retirement plans
- Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to consider crypto holdings as mortgage backing assets
- Major crypto strategy report from Trump’s digital assets working group due Wednesday
- Democratic senators led by Elizabeth Warren oppose crypto mortgage integration citing volatility risks
- Senate still needs to pass comprehensive crypto market structure legislation after House approval
The Trump administration is advancing plans to integrate cryptocurrencies into major parts of the U.S. financial system. President Trump is expected to issue an executive order allowing 401(k) retirement plans to include digital assets.
The move would open retirement investing to cryptocurrencies for millions of Americans. Current regulations limit most 401(k) plans to traditional investments like stocks and bonds.
William Pulte, director of the Federal Housing Finance Agency, has already ordered mortgage giants Fannie Mae and Freddie Mac to prepare plans. These plans would consider borrowers’ crypto holdings as assets that can back mortgages.
Pulte said the decision came “after studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world.” He believes considering additional borrower assets may help assess the full spectrum of available reserves.
The administration’s broader crypto strategy will be detailed in a report due Wednesday. The report comes from Trump’s Presidential Working Group on Digital Assets Markets, established by his January executive order.
The working group was tasked with developing federal regulatory frameworks for digital assets. It was also asked to consider creating a strategic national digital assets stockpile.
Democratic Opposition Grows
Democratic lawmakers are pushing back against the crypto mortgage initiative. Senator Elizabeth Warren and other Democratic senators sent a letter opposing the plan.
The senators warned that including crypto assets in mortgage underwriting could pose risks. They cited cryptocurrency’s high volatility as a danger to housing market stability.
“Expanding underwriting criteria to include the consideration of unconverted cryptocurrency assets could pose risks to the stability of the housing market and the financial system,” the Democratic senators wrote. The letter specifically mentioned crypto’s price swings as a concern for mortgage lending.
Democrats had already suffered setbacks this month when some party members supported crypto legislation. The Guiding and Establishing National Innovation for U.S. Stablecoins Act passed with bipartisan support.
Legislative Progress Continues
Congress recently passed the GENIUS Act establishing stablecoin oversight rules. This marked Trump’s first major crypto legislative victory during July’s “Crypto Week.”
The Senate is now working on broader crypto market structure legislation. The House already passed the Digital Asset Market Clarity Act on similar issues.
Senate lawmakers need more than 60 votes to advance their version of the market structure bill. This requires Democratic support similar to what the GENIUS Act received.
The crypto industry has until August 5 to provide feedback on the Senate’s discussion draft. However, this deadline falls during Congress’s August recess when lawmakers will be away from Washington.
House members have already begun their summer break. The Senate recess typically slows the pace of federal policy work.
The Wednesday report is expected to cover multiple crypto policy areas. These may include details on the proposed Bitcoin Strategic Reserve and crypto tax policies.
Trump’s January executive order stated that “the digital asset industry plays a crucial role in innovation and economic development in the United States.” The order emphasized supporting “responsible growth and use of digital assets, blockchain technology, and related technologies.”
The administration’s crypto initiatives represent some of Trump’s most concrete policy achievements in his second term. Federal agencies continue advancing crypto integration even as Congress pauses for summer recess.
