Coinbase has funded the first Fannie Mae-insured mortgage in the U.S. using Bitcoin-backed collateral, bringing digital assets into a part of the housing finance market traditionally dominated by cash savings and bank deposits.

According to Coinbase, the transaction was completed in partnership with Better Mortgage, which originated and serviced the loan while Coinbase provided the infrastructure used to secure the borrower’s Bitcoin holdings.

The mortgage was issued to Joe and Amy, a couple from Ann Arbor, Michigan, according to a Yahoo Finance report cited by the company.

Rather than selling their Bitcoin to fund the purchase, the borrowers placed the asset into a custody account that served as collateral for the down payment. Joe reportedly said that the arrangement allowed them to retain exposure to Bitcoin while moving forward with their home purchase.

The launch arrives shortly after Coinbase introduced a separate product focused on pre-IPO private companies. One day before announcing the mortgage, the exchange unveiled USDC-settled perpetual futures tied to private firms, beginning with a SpaceX-linked contract that offers eligible traders up to 5x leverage.

Bitcoin serves as mortgage collateral

Details shared by Coinbase show that approved borrowers can pledge Bitcoin and USDC without selling the assets. Once a mortgage application is approved through Better Mortgage, customers can transfer their crypto into a custodial wallet through their Coinbase account, where it serves as collateral for the loan.

Roy Zhang, Coinbase’s director of product, explained that the process is completed digitally.

“They click through on our product interface. They go through the application process on Better. Better approves them. They sign in to their Coinbase account, and with a single click, their bitcoin moves into a custodial wallet. And then they’re done.”

Better Mortgage has already opened a waitlist for the product ahead of a broader launch planned for this summer. The lender estimates a potential loan volume of approximately $250 million based on current waitlist data.

Vishal Garg, founder and chief executive officer of Better, described crypto-backed conventional mortgages as a natural extension of changing household investment habits.

Garg said more Americans are holding wealth in digital assets rather than traditional bank accounts, creating demand for financing products that recognize those holdings.

Mortgage meets Fannie Mae standards

A key element of the transaction is Fannie Mae’s involvement. As crypto.news reported earlier, the mortgage giant first announced in March this year that it would begin accepting cryptocurrency assets when evaluating mortgage down payments.

Garg said the completed mortgage satisfies the underwriting requirements associated with a Fannie Mae-conforming loan. According to him, this means the product operates within the existing mortgage framework rather than outside it.

He also stated that acceptance by a government-sponsored enterprise represents recognition of digital assets as eligible collateral alongside more traditional forms of wealth. Looking ahead, Garg said tokenized mortgages could eventually incorporate additional digital assets, including tokenized stocks.

For Coinbase, the mortgage rollout adds another crypto-based financial product to its expanding portfolio. Alongside the new housing finance initiative, the exchange said it plans to offer more pre-IPO perpetual futures contracts tied to sectors such as artificial intelligence, energy, technology, and space, following the launch of its SpaceX-linked product.

White House adviser Patrick Witt defended the CLARITY Act as a law-enforcement-friendly crypto bill, even as lawmakers face a shrinking window to pass the legislation before midterm politics slow the process.

White House crypto adviser Patrick Witt used a Blockchain Association town hall to defend the CLARITY Act against criticism from law enforcement groups. The legislation strengthens regulatory oversight while supporting law enforcement efforts in the digital asset sector.

His comments came as debate over the bill’s anti-money laundering language grew sharper in Washington. Critics argue that parts of the bill could make it harder to trace illicit finance. Supporters say the measure would bring more crypto activity under federal supervision and give agencies clearer rules.

Lummis warns the Senate clock is closing

Senator Cynthia Lummis also urged lawmakers to move quickly. She said Congress may not get another clear chance to pass broad digital asset rules until 2030 if the current effort fails. That warning has turned the CLARITY Act into one of the most time-sensitive crypto bills in the Senate.

Recent market updates said Lummis now sees a vote before the August recess as more likely than a vote before July 4. The bill has already cleared the Senate Banking Committee in a 15-9 vote and has moved onto the Senate Legislative Calendar. Senate leaders have not set a floor vote date, leaving negotiators to keep working on changes. The timing keeps pressure on both parties.

DeFi protections remain a flashpoint

A key dispute centers on the Blockchain Regulatory Certainty Act language inside the latest Senate version. The provision seeks to protect non-custodial software developers from being treated as money transmitters when they do not control user funds or move assets for customers.

DeFi advocates support that protection, saying developers should not face liability for how others use open-source tools. Some lawmakers and law enforcement groups take a different view. They argue that loose language could weaken efforts to prosecute illicit fund transfers and recover stolen money.

Supporters race to build pressure

The Blockchain Association has added pressure by releasing a letter backed by 160 former national security, intelligence, and law enforcement officials. The group said the bill would support enforcement, improve oversight, and help the U.S. set digital asset standards.

The latest push also follows broader conflict between banks and crypto firms. JPMorgan analysts recently warned that the bill’s passage window is narrowing as Congress faces a crowded calendar. Stablecoin rewards, anti-money laundering rules, DeFi protections, and political ethics concerns remain central hurdles before the bill can reach President Donald Trump’s desk.

A bipartisan group of Senate Republicans is pressing U.S. financial regulators to clarify how capital standards should apply to crypto-related activities. Led by Senator Cynthia Lummis, the lawmakers sent a May 27 letter to Federal Reserve Vice Chair for Supervision Miki Bowman, Federal Deposit Insurance Corp. Chairman Travis Hill, and Comptroller of the Currency Jonathan Gould. The outreach comes as the regulatory framework for digital assets remains a central focus of congressional and supervisory deliberations.

The letter acknowledges the March guidance that clarified the capital treatment of tokenized securities, but urges regulators to extend the same clarity to the on-balance sheet handling of digital assets more broadly. According to Cointelegraph, the move signals lawmakers’ intent to shape how crypto activities are capitalized within the banking system as part of broader regulatory reform efforts.

The Senators contend that current international standards for capitalizing crypto holdings—most notably the Basel Committee on Bank Supervision’s framework—impose a 1,250% risk weight on crypto assets, describing it as a “de facto ban” on banks holding crypto. They argue that any capital framework should reflect the actual risk profile of digital assets and be technology-neutral to preserve banks’ ability to participate meaningfully in crypto markets.

The letter was signed by Senator Cynthia Lummis and colleagues including Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted. It arrives as lawmakers prepare to advance a broader crypto bill, the CLARITY Act, which would delineate how federal agencies regulate crypto platforms and activities. The current version envisions banks using digital assets and blockchain technology for payments, lending, custody, and trading, among other functions, and is a focal point of legislative activity ahead of the November midterm elections.

The group urged regulators to begin work on a new capital framework for crypto that would underpin on-balance sheet activities while maintaining a robust safety net for the banking system. They also emphasized the need for a calibrated approach that aligns with the opportunities and risks intrinsic to digital assets, rather than applying a one-size-fits-all treatment borrowed from legacy asset classes.

Key takeaways

• A coalition of Senate Republicans is urging U.S. regulators to clarify capital standards for crypto-related on-balance sheet activities.
• The push centers on extending March guidance for tokenized securities to a broader, clear framework for digital assets held on banks’ balance sheets.
• Criticism is directed at the Basel Committee’s 1,250% risk weight for crypto assets, with lawmakers urging a calibrated, technology-neutral approach.
• The CLARITY Act is advancing in the Senate and would define federal regulatory roles for crypto, including permitting banks to use digital assets for payments, lending, custody, and trading.
• Lawmakers stress the need for early, practical capital guidance to avoid barriers to bank participation in crypto markets, even as the midterm timeline increases the urgency of passage.

Regulatory push and governance dynamics

The core objective of the lawmakers’ letter is to push for a capital framework that accurately reflects the risk profile of digital assets and enables banks to engage with crypto markets without facing prohibitive capital charges. By explicitly commending the March guidance on tokenized securities while urging broader application, the Senators signal a preference for progress that can be scaled across asset types, rather than piecemeal, asset-specific rules.

The Basel Committee’s current stance—particularly the high risk weights assigned to crypto holdings—has been a point of contention for U.S. regulators and the banking sector. The lawmakers describe the 1,250% figure as not calibrated to the actual risk profile of digital assets, arguing that an effective framework should balance safety with the economy-wide benefits of the digitization of finance. They emphasize a technology-neutral approach that preserves banks’ authority to participate in digital asset markets and avoid unnecessarily restrictive capital requirements.

Beyond capital adequacy, the letter stresses that any capital treatment for digital assets should be compatible with a broader, technology-neutral policy environment that supports safe, scalable innovation in the financial system. This stance sits within a larger regulatory conversation about how to align U.S. rules with evolving international standards, and how to reconcile a rapidly digitizing financial landscape with traditional prudential safeguards.

Legislative trajectory and cross-agency oversight

The CLARITY Act currently under consideration in the Senate would delineate the authorities of the Securities and Exchange Commission and the Commodity Futures Trading Commission in relation to crypto markets and service providers. The bill envisions a framework for how regulators oversee exchanges, wallet providers, custody services, and other crypto-enabled activities, while also addressing core issues such as stablecoins, ethics, and developer standards as part of its broader policy architecture.

Regulatory and legislative dynamics remain complex. The Senate Banking and Agriculture Committees have each advanced companion versions addressing securities and commodities, and the full Senate will need to reconcile the differing approaches before final passage. With the midterm elections approaching, lawmakers are prioritizing timely action to avoid the prospect of reintroducing substantial crypto legislation in the next session. As cross-committee work progresses, the debate will increasingly hinge on issues such as stablecoins, risk management, consumer protection, and the appropriate scope of regulatory oversight for developers and platforms within the digital-asset ecosystem.

Lawmakers also flagged that any final bill would need to address licensing and regulatory oversight in a coherent manner—elements that are critical for institutions seeking to deploy or expand crypto activities within compliant frameworks. The interplay between capital standards and licensing requirements will shape how banks and crypto firms plan governance, risk programs, and third-party arrangements in the years ahead.

Institutional implications and broader policy context

The push for capital clarity matters for banks contemplating crypto activities, fintechs evaluating tokenized offerings, and crypto firms seeking custody and settlement capabilities within regulated, insured institutions. A clarified capital framework could reduce uncertainty around asset classes that have historically faced punitive capital treatment, potentially lowering barriers to participation while preserving the core safety functions expected by supervisors and taxpayers.

From a compliance and enforcement standpoint, clearer capital guidance would support more consistent risk assessment and reporting practices across banks that interact with digital assets. This, in turn, could impact internal capital planning, liquidity management, and the design of risk-weighting methodologies within financial institutions. Regulators would still need to monitor emerging products, evolving custody solutions, and the resilience of settlement rails as the asset class expands, but a more predictable framework would help align day-to-day operations with supervisory expectations.

Contextually, the ongoing CLARITY Act debate occurs alongside parallel regulatory developments in other major markets. While the U.S. seeks to codify a domestic framework for digital assets, global standards—ranging from prudential norms to anti-money-laundering controls—continue to evolve. The regulatory landscape remains uncertain in certain areas, such as explicit definitions of digital asset custody, disclosure requirements, and the delineation of responsibilities among banking supervisors, securities regulators, and commodities authorities. Analysts and compliance teams should monitor how these tensions resolve as the CLARITY Act’s provisions are refined and as Basel-related capital discussions influence U.S. rulemaking timelines.

Regardless of the eventual outcome, the episode underscores a broader policy objective: to create a robust, implementable regime that allows financial institutions to participate meaningfully in digital-asset markets while maintaining strong risk controls, consumer protections, and market integrity. The stakes extend beyond market structure, touching licensing, cross-border cooperation, and the regulatory certainty that institutions rely on for long-term strategic planning.

Closing perspective: As the Senate returns from recess and the CLARITY Act moves forward, the balance between prudent prudential safeguards and practical capital treatment will shape how banks, exchanges, and crypto firms operate within a compliant U.S. financial system. The next steps will reveal how regulators translate high-level principles into concrete capital rules, and how lawmakers reconcile competing objectives before the midterm window closes.

Bitcoin (BTC) has fallen into bear-market territory after a sharp overnight selloff, while Michael Saylor framed the decline as a temporary capital rotation into artificial intelligence rather than a loss of confidence in the asset.

Strategy Executive Chairman Michael Saylor said Thursday on X that capital markets have directed about $400 billion into AI infrastructure over the past six months, while spot Bitcoin ETFs have recorded about $4 billion in outflows since May 14. Saylor said the withdrawals have placed pressure on bitcoin, but he described the move as “a capital rotation, not a Bitcoin impairment.”

Bitcoin dropped as low as $61,400 overnight before cutting part of the decline to trade near $62,400 in premarket hours Thursday. The asset was down 7% over 24 hours and more than 14% over the past week. Based on the recent move, Bitcoin has now fallen 22.7% from its four-week high. The decline has also erased more than $600 billion from the total crypto market value, according to the figures cited in the market report.

Saylor links Bitcoin pressure to AI spending

Saylor’s explanation framed the sell-off as part of a larger capital move toward AI infrastructure. Wall Street consensus estimates put hyperscaler capital expenditures above $600 billion for 2026, while CreditSights estimates that about $450 billion of that amount will go into AI hardware, servers, and networking equipment.

According to Saylor, the bitcoin decline does not show damage to the investment case for the asset. He said volatility creates opportunity, while ETF outflows have added pressure during a period when institutions are funding AI-related projects at historic levels.

At the same time, the timing of his comments drew attention because Strategy recently sold a small portion of its bitcoin holdings.

Strategy’s Bitcoin sale draws market attention

Strategy disclosed in a June 1 Form 8-K that it sold 32 Bitcoin between May 26 and May 31 at an average price of $77,135 per coin. The company said the sale raised $2.5 million net of expenses and would help fund dividend payments on its STRC preferred shares.

The sale was small compared with Strategy’s total holdings. The company remains the largest corporate bitcoin holder, with 843,706 BTC valued at roughly $61 billion based on the figures in the report.

However, analysts cited in the report said the transaction affected market sentiment because Strategy had not sold bitcoin since late 2022. Saylor’s public image as a steady Bitcoin accumulator had become part of the company’s market identity, and the sale gave bearish traders a new point of focus during the selloff.

Balance sheet moves came before the decline

One week before the sale, Strategy had already changed its financial focus. The company repurchased $1.5 billion of its 0% convertible notes due 2029 for about $1.38 billion in cash.

According to Strategy, the transaction cut its debt obligations by about $120 million and reduced outstanding convertible debt from $8.2 billion to $6.7 billion. The company also reported an $871 million cash reserve after the repurchase.

At that time, Strategy held 843,738 BTC and said it planned to rebuild its liquidity buffer through future capital raises.The Bitcoin decline also weighed on Strategy’s stock. MSTR has fallen nearly 15% over five trading days, according to the market figures in the report. While Saylor argued that bitcoin faces temporary pressure from AI-driven capital flows, Strategy’s decision to sell even a small amount of bitcoin has complicated the market response.

Ripple has expanded access to its RLUSD stablecoin across more than 40 blockchain networks through a new integration with cross-chain interoperability protocol Wormhole.

According to Wormhole, RLUSD is now available through its Native Token Transfers (NTT) framework, allowing the stablecoin to move natively between supported blockchain ecosystems. The rollout extends RLUSD beyond its original availability on the XRP Ledger and Ethereum, bringing it to a range of networks that have adopted Wormhole’s infrastructure.

Among the newly supported chains are Ethereum layer-2 networks including Base, Ink, Optimism, and Unichain. The expansion also includes the XRP Ledger EVM sidechain, giving developers access to RLUSD through Ethereum-compatible tools while maintaining connectivity with the XRP Ledger ecosystem.

The move follows Ripple’s earlier plans to make RLUSD available on additional networks as part of its multichain strategy. Since launching in late 2024, the stablecoin has grown to more than $1.7 billion in market capitalization, making it one of the largest dollar-backed stablecoins in the market.

RLUSD expands support for payments and tokenized assets

Ripple said the Wormhole integration allows RLUSD to move across multiple blockchain environments without relying on wrapped versions of the asset. According to the company, the setup is designed to support cross-border payments, institutional on- and off-ramp services, and tokenization-related activities.

“For developers and institutions building onchain, that expands access to compliant, USD-backed liquidity across supported networks.”

The company has increasingly positioned RLUSD as infrastructure for both crypto-native and traditional financial use cases.

Recent partnerships indicate that the strategy is extending beyond blockchain networks. As crypto.news reported earlier this week, the company made the stablecoin available to institutional users in Türkiye through partnerships with BiLira, Bitexen, and Bitlo. According to Ripple, the collaborations provide Turkish institutions with access to RLUSD for payments, settlement, and other financial use cases.

Academic initiatives have also become part of the rollout. Ripple recently added Istanbul Technical University to its University Blockchain Research Initiative, a program that will support blockchain research, graduate fellowships, and academic projects using RLUSD.

XRP Ledger ecosystem gains another RLUSD use case

Alongside the Wormhole integration, RippleX highlighted the significance of RLUSD becoming available on the XRP Ledger EVM sidechain.

According to the XRPL development team, the sidechain combines compatibility with existing Ethereum development tools while remaining connected to the XRP Ledger.

RippleX said growing RLUSD adoption across smart contract networks points to increasing demand for regulated stablecoins within decentralized finance and multichain financial applications. The team added that XRP can serve alongside RLUSD in functions such as liquidity provision, settlement, collateral management, payments, and asset swaps.

Outside of the stablecoin rollout, Ripple-backed Evernorth Holdings has outlined plans to incorporate RLUSD into its proposed XRP-focused treasury business. Regulatory filings show the company intends to use RLUSD for institutional decentralized finance activities while also supporting tokenized real-world asset initiatives on the XRP Ledger.

The stablecoin’s adoption has also expanded into payments infrastructure. Ripple recently noted that Mastercard launched 24/7 settlement capabilities using RLUSD on the XRP Ledger, adding another use case as the company continues to extend the stablecoin across blockchain networks and financial services platforms.

Russia has sanctioned 17-year-old British student Alexander Browder after his crypto research helped UK officials target a ruble-backed stablecoin network accused of moving funds for Moscow’s war economy.

TASS, Russia’s state news agency, reported Tuesday that Browder was one of five British citizens added to Moscow’s “stop list” after Russia accused them of spreading what its Foreign Ministry called false claims about the country.

Russia targets teen researcher after A7A5 probe

Browder, the son of Kremlin critic Sir Bill Browder, spent 18 months studying A7A5, a ruble-pegged stablecoin issued by Kyrgyzstan-based Old Vector and hosted on the Tron and Ethereum blockchains. According to his Global Cryptocurrency Laundering Database website, his work appeared in a Henry Jackson Society report titled “Confronting the Illicit-Finance Hydra in Crypto Markets,” which reviewed 164 crypto laundering cases across two decades.

The teenager also advised UK ministers before Britain announced fresh sanctions on entities tied to A7A5. In comments to Metro, Browder said the Russian sanctions did not intimidate him and argued that Moscow’s response showed his work had “touched a nerve.” On X, he described himself as the first high school student sanctioned by an authoritarian government for exposing corruption.

UK says A7A5 helped bypass Western sanctions

According to a May 26 UK Foreign Office statement, A7A5 formed part of a network built to bypass Western sanctions and processed more than $90 billion in transactions last year. Foreign Secretary Yvette Cooper said Britain was targeting the “infrastructure that underpins” Russia’s war economy.

Browder’s research estimated that rogue states, including Iran and North Korea, laundered about $350 billion in illegal funds, with roughly half allegedly moving through the A7A5 network. Elliptic, a blockchain analytics firm, reported in January that A7A5 handled more than $100 billion in transactions during its first year.

Western governments expand crypto sanctions

Britain’s May 26 designations targeted 18 entities linked to the alleged network. According to the UK government, the list included a Kyrgyz bank suspected of enabling payments and a crypto exchange accused of sending more than $1.5 billion to Moscow.

At the same time, European authorities have also moved against Russia-linked crypto services. In April, the European Union introduced its 20th sanctions package and banned Russia-based crypto service providers. The EU package, also named A7A5 and another ruble-backed stablecoin, RUBx.

Reuters reported last month that Kyrgyzstan shut down 50 companies over sanctions-evasion concerns. Kyrgyzstan’s Ministry of Justice said the firms posed “high sanctions risk,” but it did not publicly name them.

Moscow adds four other Britons to the stop list

Besides Browder, TASS identified the sanctioned British citizens as Washington Post journalist Catherine Belton, CTG managing director Alice Mary Laugher, Chelsea Group founder Richard Nicolas Westbury, and The i Paper journalist Richard Holmes.

Russia’s Foreign Ministry said the list would keep expanding in response to what it called unfriendly actions by British authorities. Browder told GB News that Moscow’s move could make people more afraid to work with A7A5, although he tied that outcome to how strongly governments enforce the sanctions.

Bitcoin has seen its network use fall to its weakest level in more than seven years as selling pressure and lower on-chain activity weigh on market confidence.

Bitcoin Magazine data showed that the 60-day moving average of active Bitcoin addresses stood slightly above 600,000 on June 4. The reading placed Bitcoin’s address activity near levels last seen during the 2019 bear market, according to the same data.

Bitcoin active addresses return to 2019 levels

According to Bitcoin Magazine, the decline in active addresses has continued since the end of the 2021 bull market. The data showed a steady drop in wallet activity over several years, even as Bitcoin became more accessible through regulated investment products.

Spot Bitcoin exchange-traded funds changed how many investors gain exposure to BTC. After the products received approval, some investors moved toward ETF shares instead of direct on-chain transactions, according to the report. These products offered regulated access and deeper trading liquidity, which reduced the need for some investors to move Bitcoin across the network.

At the same time, Bitcoin has faced stronger competition from other layer-one networks. Ethereum, Solana, and Tron have continued to host stablecoin payments and frequent settlement activity, while Bitcoin remains mostly used as a store-of-value asset.

The report also linked part of the decline to the Genius Act, a U.S. law signed in July 2025 that created federal rules for stablecoin issuers. After the law took effect, institutional stablecoin activity expanded across chains built for faster and cheaper payments.

According to the report, more firms have used Ethereum, Solana, and Tron for stablecoin transfers, while Bitcoin has seen less frequent transactional demand. The trend has added pressure to Bitcoin’s active-address count, which remains one of the key measures used to track network participation.

BTC price slides as sentiment weakens

Bitcoin traded near $63,950 at the time of reporting, down more than 26% since the start of the year. The decline has kept market attention on the February 2026 support area, where traders previously watched for buyer interest.

As previously reported by crypto.news, Bitcoin had rebounded from an intraday low near $61,500 after weaker-than-expected U.S. labor market data raised expectations that the Federal Reserve could still cut interest rates later in 2026.

The U.S. Department of Labor reported that initial jobless claims for the week ended May 30 rose by 13,000 to 225,000. Economists had expected 215,000 claims, while the prior week’s reading was revised higher to 212,000.

Labor data offers limited relief

Additional Labor Department figures showed final labor costs rose 1.8% in the first quarter, below economists’ estimate of 2.5%. Continuing jobless claims fell by 8,000 to 1.777 million for the week ended May 23.

Market participants often view weaker labor data as supportive for risk assets because it can give the Federal Reserve more room to lower interest rates if economic conditions soften further.

However, the report warned that Bitcoin’s network activity may remain under pressure if capital continues moving into artificial intelligence-related stocks. A recovery in active addresses could support bullish sentiment, but Bitcoin’s current on-chain data shows participation remains weak compared with previous market cycles.