WASHINGTON, DC — Democracy Defenders Fund (DDF) today sent a formal letter to the Office of Inspector General (OIG) of the Federal Housing Finance Agency (FHFA) requesting an investigation into potential violations of federal conflict-of-interest laws by FHFA Director William J. Pulte.

Pulte recently directed Fannie Mae and Freddie Mac to consider cryptocurrency (like Bitcoin) as a type of asset when deciding if someone can get a mortgage loan. At the same time, Pulte has publicly reported that he owns more than $1 million in cryptocurrency and more than $5 million in stock in a company that mines Bitcoin. If cryptocurrency becomes a more important asset in mortgages, its value could go up, which could result in a financial boon to those who own those assets: as Pulte reportedly does. Government officials are barred from making decisions that could boost their own finances.

"There appears to be a clear conflict of interest here. Public officials should not make decisions where the potential for personal financial gain exists, much less when those decisions could affect millions of homeowners,” said Virgina Canter, Chief Counsel for Anticorruption and Ethics at Democracy Defenders Fund. "Director Pulte’s reported cryptocurrency investments directly clash with his role in shaping policy. It’s unacceptable that his actions may have been influenced by the chance to boost his own financial interests."

The letter details how, in his first few months in office, Director Pulte has made significant changes within the FHFA, including removing key board members from Fannie Mae and Freddie Mac and appointing himself as chair of both boards. The recent decision to include cryptocurrency in mortgage risk assessments could set a precedent with far-reaching financial consequences, including a potential rise in the value of cryptocurrencies like Bitcoin and Solana: both of which Pulte has reported owning.

"Given the potential financial gain for Pulte, this issue demands a full investigation," said Christopher Swartz, Senior Ethics Counsel at DDF. "The American public deserves to know that government decisions are made in their best interest, not for personal profit."

A copy of the letter can be found here.

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Democracy Defenders Fund brings together a nonpartisan team to work with national, state, and local allies across the country to defend in real-time the foundations of our democracy.