June 25 (Reuters) - The regulator overseeing Fannie Mae

and Freddie Mac on Wednesday ordered the housing giants to

consider cryptocurrency as an asset for single-family mortgage

loan risk assessments, a move that could potentially open the

door to borrowers using crypto investments to qualify for home

loans.

William Pulte, the director of the Federal Housing Finance

Agency, said in a social media post that he had ordered Fannie

and Freddie to "prepare their businesses to count cryptocurrency

as an asset for mortgage," which he said would be in line with

President Donald Trump's vision of making the U.S. "the crypto

capital of the world."

The FHFA oversees Fannie Mae and Freddie Mac, which have

operated under U.S. government control since 2008 after

suffering heavy losses during the subprime mortgage crisis. They

guarantee over half of the nation's mortgages.

Cryptocurrencies are known for being highly volatile and are

often subject to wild price swings, sometimes for no clear

reason. In February, bitcoin -- the largest cryptocurrency --

suffered its biggest weekly fall in two years, dropping 16%,

although it has since recovered.

Trump has sought to overhaul U.S. cryptocurrency policy

after courting cash from the industry on the campaign trail.

Trump has appointed industry-friendly regulators and has hosted

industry leaders at the White House. Cryptocurrencies have

reacted favorably, with bitcoin reaching all-time highs this

year.

In a directive signed Wednesday, Pulte said that considering

additional borrower assets -- such as cryptocurrencies -- could

enable Fannie and Freddie to assess the full financial picture

of a borrower and could "facilitate sustainable homeownership to

creditworthy borrowers."

Pulte's order did not specify which cryptocurrencies Fannie

and Freddie should consider.