Morning Minute: Fannie Mae Accepts Crypto for Mortgages
BTC dropped below $67,000 following news that the Pentagon is preparing possible military action against Iran, though prices briefly rebounded after Trump extended a military pause for 10 days due to diplomatic talks. Volatility is expected as a $15B options expiry, release of PCE inflation data, and the end of Trump’s diplomatic window all converge Friday. A major milestone was reached in the US mortgage market as Coinbase and Better Home & Finance introduced the first Fannie Mae-conforming mortgage allowing borrowers to use BTC or USDC as collateral for down payments. This avoids selling crypto and triggering taxable events, with no margin calls unless payments are 60 days overdue. Rates are 0.5%-1% higher than normal. Marathon Digital (MARA) sold over 15,000 BTC for about $1.1B and used proceeds to repurchase $1B in convertible notes with an $88 million discount. Despite pro-crypto rhetoric, US developers of crypto privacy tools face legal threats as prosecutions continue and legislative protections were dropped from the Clarity Act. Retail investors own 80% of STRC (yield product) versus 40% of MSTR, showing appetite for yield and new financial products among individual investors.
