The recent passage of the GENIUS Act by the U.S. Senate—a regulatory framework for stablecoins—has been widely interpreted as a milestone for cryptocurrency mainstream adoption. Concurrently, the Federal Housing Finance Agency (FHFA) made history by proposing crypto assets as eligible mortgage collateral. While Bitcoin saw modest 0.3% gains this week, Coinbase (COIN) stock surged nearly 40% over the past month, dramatically outperforming BTC’s 1% decline.
Breaking the Correlation: Coinbase Defies Bitcoin’s Trend
Cryptocurrency stocks traditionally mirror Bitcoin’s price movements, but Coinbase’s recent rally breaks this pattern. On June 26, its shares hit an all-time high of $382, surpassing the 2021 record, with a 5% intraday spike. Key catalysts include:
- GENIUS Act: Streamlines compliance pathways for crypto businesses.
- FHFA Mortgage Policy: Allows crypto holdings to qualify as loan reserves without mandatory USD conversion.
👉 Discover how regulatory shifts are reshaping crypto investments
FHFA’s Crypto Mortgage Directive: A Watershed Moment
The FHFA’s June 26 mandate requires Fannie Mae and Freddie Mac to:
1. Develop protocols accepting crypto as collateral for single-family mortgages.
2. Permit in-kind crypto reserves (no pre-loan liquidation to USD).
3. Submit implementation proposals within a “reasonably expedited timeframe.”
“Crypto assets represent an emerging wealth-building avenue beyond traditional stocks and bonds. Including them in mortgage assessments could expand sustainable homeownership opportunities.”
— FHFA Official Document
Policy Uncertainties Remain
While the directive took immediate effect, critical details are pending:
– Eligible cryptocurrencies
– Risk-weighting criteria
– Legal liability frameworks
Why Coinbase Benefits disproportionately
- Regulatory Tailwinds: Clearer rules reduce operational uncertainty.
- Custody Solutions Growth: Demand surges for compliant crypto storage.
- Institutional Adoption: Mortgage integration signals broader asset-class recognition.
👉 Explore Coinbase’s institutional-grade crypto services
FAQs: GENIUS Act and Crypto Mortgage Policies
Q: How does the GENIUS Act affect stablecoin issuers?
A: It establishes federal oversight for reserves and audits, boosting transparency but increasing compliance costs.
Q: Can I now get a mortgage using Bitcoin?
A: Not immediately. Lenders must first adopt FHFA guidelines—likely a multi-year process.
Q: Why did Coinbase rise while Bitcoin fell?
A: Coinbase profits from volatility (trading fees) and regulatory clarity, whereas BTC reacts to macro factors like ETF flows.
Q: What cryptos might qualify as collateral?
A: Likely only high-market-cap assets (BTC, ETH) initially due to liquidity needs.
Market Outlook
Analysts highlight two divergent trends:
– Short-term: Speculative trading around policy announcements.
– Long-term: Infrastructure plays like Coinbase gain from accelerated institutional adoption.
| Metric | Coinbase (COIN) | Bitcoin (BTC) |
|---|---|---|
| 1-Month Change | +39% | -1% |
| Key Catalyst | Regulatory clarity | Macro uncertainty |
The FHFA’s move—though exploratory—could redefine crypto’s role in traditional finance, with Coinbase positioned as a primary gateway for mortgage-related crypto services.