Copyright Benzinga
Bitcoin (CRYPTO: BTC) became the centerpiece of two major policy moves in Washington as Senate leaders struck a bipartisan deal to reopen the U.S. government and the Trump administration advanced a proposal to allow cryptocurrency to be listed as mortgage collateral. Bitcoin Rallies As Washington Reaches Funding Agreement The world's largest cryptocurrency climbed more than 1% intraday as the Senate approved a procedural motion to advance a bill funding the government through January. Eight Democrats joined Republicans to pass the measure, which also reverses certain federal layoffs and restores pay protections for government workers. The vote comes as investor confidence shows signs of strain. A University of Michigan survey released last week showed consumer sentiment at a three-year low amid concerns about the shutdown's economic impact. Broader digital asset markets mirrored the relief rally, with XRP (CRYPTO: XRP) jumping 6.75% yesterday, while Ethereum (CRYPTO: ETH) traded slightly down. Trump Administration Pushes Crypto-Backed Mortgage Policy The administration of President Donald Trump is exploring a proposal that would allow digital assets to be listed as part of mortgage applications. According to CNBC, Federal Housing Finance Agency Director Bill Pulte has asked Fannie Mae and Freddie Mac to draft frameworks for including cryptocurrencies as collateral in single-family home loans. If implemented, the policy would mark the first time the government-sponsored mortgage giants recognize crypto holdings in credit assessments. While some private lenders already let clients declare crypto portfolios, Fannie and Freddie purchase roughly 70% of all U.S. home loans, giving the initiative broad reach across the housing market. Critics in Congress, including Senators Elizabeth Warren (D-Mass.) and Chris Van Hollen (D-Md.), expressed concern about potential volatility risks and requested detailed disclosures from the FHFA. Supporters such as Wyoming Senator Cynthia Lummis (R-Wyo.) argue the change could modernize lending and help younger homebuyers leverage digital assets. Lummis's proposed 21st Century Mortgage Act seeks to codify the initiative into law, describing it as "an innovative path to wealth building for Americans who hold digital assets." Analysts Say Treasury Firms May Benefit Market analysts highlighted that improving liquidity conditions and fiscal spending expectations continue to support Bitcoin's role as a hedge against currency debasement. Sam Callahan, Director of Bitcoin Strategy at OranjeBTC, told CNBC that easing Federal Reserve policy and sustained fiscal deficits create a favorable macro backdrop for hard assets. "When they stop QT and begin cutting rates, that's good for liquidity. Fiscal deficits keep demand for inflation hedges like Bitcoin strong," he said. Callahan added that Bitcoin's structure and liquidity separate it from other cryptocurrencies, noting that institutional capital prefers BTC due to its security and transparency. "Bitcoin is increasingly viewed as the institutional-grade crypto asset," he said, citing recent $20 billion market liquidations that exposed liquidity gaps in smaller coins. Global Macro Tailwinds Add Support Beyond U.S. politics, Callahan pointed to global monetary easing as another catalyst. "Eighty-five percent of central banks around the world are cutting rates. That's bullish for Bitcoin as a global, scarce asset," he said. He also dismissed long-term concerns over stablecoin competition raised by ARK Invest's Cathie Wood, arguing that while stablecoins are expanding in payments, they remain fiat-pegged and inflation-sensitive. "Stablecoins lose purchasing power over time. Bitcoin remains the superior store of value," he noted. Read Next: Why Is CoreWeave Down Nearly 9% In Pre-Market Despite Strong Q3 Results? Image: Shutterstock
