Better, Coinbase Face Senate Pushback Over $250M Bitcoin, USDC Mortgage Pipeline

Key Point

Better and Coinbase announced in March a mortgage structure that lets borrowers pledge bitcoin or USDC for a home purchase. Borrowers receive a conforming first-lien mortgage written to Fannie Mae's guidelines and a separate privately financed down-payment loan. Better said the first loan closed in early June and the waitlist ahead of the summer rollout represented roughly $250 million in potential volume. Bitcoin collateral requires 250% of the down payment amount, while USDC collateral requires 125%. Seven senators wrote to FHFA Director William Pulte on April 30 and asked him to rescind any approval and prohibit the Enterprises from taking crypto-related asset risks.

Why it matters: Crypto collateral may reach bank balance sheets faster if mortgage lenders can convert pledged tokens into financeable housing credit.

Market Sentiment

Cautiously Bullish, Regulatory-driven, Volatile.

Reason: Better and Coinbase closed a crypto-backed mortgage loan with a roughly $250 million waitlist, which may support institutional demand but keeps policy risk visible.

Similar Past Cases

ProShares Bitcoin Strategy ETF began trading in October 2021, and the fund was up 3 percent shortly after its NYSE debut. (WashingtonPost) Difference: That case opened exchange-traded exposure, while the current structure uses pledged crypto inside mortgage underwriting.

Ripple Effect

Collateralized mortgage funding could move crypto from exchange accounts into regulated credit underwriting if lenders treat pledged tokens as bankable collateral. If FHFA or the Enterprises limit the structure, then the channel may remain a niche private loan product.

Opportunities & Risks

Opportunities: When Better publishes rollout terms or bank funding details, then confirmed loan demand could be a potential entry signal for crypto-backed lending infrastructure.

Risks: If FHFA rescinds approval or restricts Enterprise exposure, then reducing exposure to the lending theme limits downside from policy reversal.