When Fannie Mae, a US government-sponsored enterprise that buys mortgages from lenders, announced plans at the end of March to accept crypto-backed mortgages for the first time, it elicited an uproar.

Supporters lauded the move as more proof of crypto’s growing legitimacy and real-world use, while digital asset detractors warned that mixing Bitcoin with the $55 trillion housing market could spark another financial crisis.

The reality is more nuanced, Sean Tuffy, a financial regulation expert, told DL News.

“It’s not really a Bitcoin mortgage as much as it is a bit of financial engineering,” Tuffy…