Can You Buy a House With Crypto in 2025?
In 2025, buying a house with cryptocurrency in the United States is not only legal; it’s also becoming more common. With the growing acceptance of digital assets and improvements in blockchain tools, more real estate agents, escrow services, and some sellers are open to crypto-funded purchases. But the process remains complex. It’s not just about whether the seller accepts Bitcoin or stablecoins. It’s also about how the payment is handled, how it’s taxed, and whether it follows both federal and state rules.
Legal Status of Crypto Real Estate Transactions in the U.S.
There is no federal law that forbids buying a home with cryptocurrency. Property can be exchanged for cash or other assets if both sides agree and the deal follows the normal steps for transferring ownership and recording the deed. The key legal point is how the tax system treats your crypto. The Internal Revenue Service (IRS) classifies digital assets as property, not currency. When you spend crypto, you are treated as if you sold it, which can trigger capital gains tax. The IRS states this directly on its “Digital assets” page and has repeated it in guidance since Notice 2014-21.
Some U.S. markets, notably Miami and Austin, have practitioners who’ve already handled crypto-related closings. Miami saw a headline 2021 sale at the Arte Surfside for $22.5 million paid in crypto; Austin’s city government has explored blockchain uses in municipal services, which helped spur local familiarity. These examples don’t mean every seller will accept crypto; they only show that the practice exists and is growing.
Federal and State Laws Governing Property Purchases With Cryptocurrency
Federal law doesn’t regulate real estate purchases paid with crypto the way it regulates mortgages. Instead, federal focus is on taxation and anti–money laundering (AML). For tax, the IRS treats digital assets as property and requires reporting of gains and losses on returns (e.g., Form 8949 and Schedule D).
To fight money laundering, FinCEN has been asking title insurance companies in certain areas to report real estate purchases made without a mortgage — when they’re paid in cash, wire transfers, or cryptocurrency, if the price is over a set amount (usually $300,000, or $50,000 in Baltimore). FinCEN renewed these GTOs on April 14, 2025, and the latest order explicitly includes “virtual currency.”
Importantly, in August 2024, FinCEN issued a final nationwide rule that will replace the GTOs and require reporting on non-financed transfers of residential real estate to legal entities or trusts starting December 1, 2025. Until then, the GTOs remain in effect. If your crypto deal involves a non-financed transfer to an entity in a covered area, the title insurer will collect and report information about the beneficial owners.
State law adds another layer. Some states recognize digital signatures and even smart contracts in some contexts. Arizona, for example, recognizes blockchain signatures and smart contracts in state law, and Wyoming has passed multiple digital-asset statutes clarifying property and commercial treatment. That said, the exact closing steps still follow each state’s real estate and notary rules.
Finally, many states have adopted remote online notarization (RON) for real estate documents, but not all. As of 2024–2025, 44 states and D.C. have enacted RON laws that allow certain notarizations to occur online. Your closing team will confirm whether RON is permitted for your specific documents in your state.
Role of Title Companies, Escrow Agents, and Notaries in Crypto Deals
Title companies, escrow agents, and notaries do the same core work in a crypto-funded purchase that they do in a traditional one. The title company confirms the seller’s ownership and checks for liens, taxes, or claims so the buyer can receive a clear title. The escrow agent holds funds and documents until all conditions are met. The notary witnesses signatures on key documents, including the deed.
Two practical realities matter when crypto is involved. First, good funds laws in many states require closing funds to arrive as final, disbursable U.S. dollars (for example, a wire, cashier’s check, or similar). Many title companies, therefore, do not disburse in cryptocurrency and insist that any crypto be converted to dollars before closing. Second, when crypto is accepted, many firms route it through a payment processor (e.g., BitPay) that converts to USD and wires escrow. These practices reduce volatility and settlement risk.
Because not all title or escrow providers support closings involving cryptocurrency, choose vendors who can clearly explain their process and compliance steps. Several firms publicly describe workflows where a crypto payment is converted to USD and deposited in escrow under standard “good funds” rules.
Cryptocurrencies Commonly Accepted in U.S. Home Purchases
Only a handful of assets are typically considered: Bitcoin (BTC), Ethereum (ETH), and USD-pegged stablecoins such as USDC and USDT. BTC remains the most recognized asset; ETH is common due to its ecosystem; and stablecoins are popular because they minimize price swings at closing. Even where crypto is accepted, many sellers still prefer conversion to USD before disbursement because lenders, title insurers, and tax authorities operate in dollars under good-funds statutes. Public title-industry resources and payment processors reflect this convert-to-USD reality.
Crypto-to-Fiat Conversion Versus Direct Wallet Transfers
You’ll usually see two models:
- Crypto-to-fiat conversion (most common). You or a payment processor sells crypto and wires USD to escrow. Processors used by title companies can handle conversion and AML/KYC screening, then send a bank wire that meets good-funds requirements. This route is widely accepted by sellers, lenders, and title firms.
- Direct wallet-to-wallet transfer (rarer). If a seller wants to receive crypto directly, parties may move funds from your wallet to theirs and document it in the purchase agreement. Because blockchain transfers are irreversible and volatile, deals using this method typically include tight timing and price-lock terms, and often still involve conversion steps for fees and taxes. Title firms frequently treat the crypto leg as a separate trade while the deed and closing funds run through standard USD escrow.
How Blockchain Technology Secures Property Records and Transactions
You don’t need blockchain to buy a home with crypto; the deed can still be processed through the usual system. That said, some local offices have tried using blockchain to make land records more secure and faster to process. For example, Cook County, Illinois, tested blockchain for property transfers back in 2016. South Burlington, Vermont, also ran a pilot with a private company to record real estate documents. Most places still use paper or scanned files, but these experiments hint at how the system might evolve.
IRS Guidelines and Taxable Events Triggered by Crypto Payments
If you pay with cryptocurrency, it’s treated as a taxable event. If the crypto’s value at the time of payment is higher than what you originally paid for it, you have a capital gain. If it’s lower, you have a loss. The IRS treats digital assets as property and requires you to report gains or losses using Form 8949 and Schedule D. You also need to keep records of the fair market value and your original cost.
Also important: businesses don’t yet have to treat crypto as “cash” to report large payments (over $10,000) on Form 8300 under Section 6050I. The IRS said in early 2024 and again in May 2025 that these rules won’t apply to digital assets until official regulations are released. But regular income and capital gains rules still apply.
Capital Gains, Cost Basis, and Timing Considerations in Home Buying
Your tax rate depends on how long you held the asset:
- Short-term (≤1 year): taxed at your ordinary income rates.
- Long-term (>1 year): taxed at 0%, 15%, or 20%, depending on income. The IRS materials and mainstream tax guides confirm these are the standard long-term capital gains rates in 2025.
Knowing your cost basis and which units you disposed of matters. The IRS explains that you must keep records showing acquisition, date, amount, and fair market value; you’ll then compute gain or loss and report it on the appropriate forms. Many taxpayers use specific identification or FIFO across multiple lots; a tax professional can help you select a compliant method for your situation.
Finally, think about timing. Waiting until the one-year mark may qualify you for long-term rates, but crypto volatility can offset that benefit. Run the numbers with your preparer before you lock your contract terms.
Using Crypto Assets to Qualify for Mortgage Loans
Most mainstream lenders do not accept crypto directly for down payments or as assets unless converted to U.S. dollars first. Government-sponsored enterprises (GSEs) have specific rules: Fannie Mae’s selling guide states that “virtual currency may only be used if exchanged for U.S. dollars” and cannot be used for earnest money or reserves until converted and properly documented. In practice, lenders usually want the converted funds “seasoned” in a bank account with documentation (often two months of statements).
At the same time, a niche market for crypto-backed housing finance exists. Firms such as Milo have originated tens of millions in crypto-collateralized mortgages, where the borrower pledges Bitcoin as collateral and the seller is still paid in U.S. dollars. These options are limited and come with unique risks (e.g., margin calls if crypto prices fall), but they show how crypto wealth can be used indirectly to finance a home purchase.
Volatility, Price Locks, and Exchange Rate Agreements in Crypto Deals
Volatility is one of the biggest practical risks. A contract that pegs the price in U.S. dollars and defines the conversion source and timestamp helps both sides. Many closings use a price-lock window and require the buyer to make up any shortfall if the crypto value falls before settlement. To reduce swing risk, some buyers and processors use stablecoins and then convert to USD immediately for escrow. Title-industry resources emphasize that final disbursement must meet good-funds requirements, which is another reason conversion to dollars is standard.
Step-by-Step Process to Buy a House With Cryptocurrency in 2025
Here’s how a crypto-funded purchase typically works today:
- Find a willing seller and confirm whether they will accept crypto directly or only after conversion to USD.
- Hire a real estate agent and attorney who have handled crypto-related deals.
- Choose a title company and escrow provider experienced with digital assets and good-funds compliance. Many will send you through a processor (e.g., BitPay) that converts crypto to USD and wires escrow.
- Negotiate the purchase contract and spell out payment terms: the asset, timing, exchange-rate source, price-lock window, fees, and who bears volatility risk.
- Complete inspections and appraisals are like any other transaction.
- Transfer the crypto or convert to cash through a regulated platform per the contract.
- Satisfy AML/KYC requests. If your deal falls under a GTO or, after December 1, 2025, the nationwide rule, the title insurer will collect beneficial-ownership details for non-financed transfers to entities or trusts.
- Close and record the deed with the county, following state requirements (including notary rules and whether RON is allowed for your documents).
Future Trends in Cryptocurrency Adoption in the U.S. Housing Market
Crypto isn’t replacing the dollar in real estate, but it’s gaining a foothold. Three trends stand out for the next few years:
- Regulatory clarity: FinCEN’s nationwide rule for non-financed transfers to entities or trusts takes effect December 1, 2025, replacing the patchwork GTO regime and standardizing reporting expectations. On the tax side, the IRS continues to roll out digital-asset reporting (e.g., broker Form 1099-DA) and FAQs that clarify basis and reporting. Greater clarity should make compliance smoother for buyers and settlement companies.
- Settlement rails and title processes: Title industry groups continue to update best practices for good funds and modern payment rails. Expect more standardized conversion workflows and more providers that can accept crypto for conversion rather than for final disbursement.
- Selective product innovation: Niche lenders and fintechs will continue to experiment with crypto-collateralized products while paying sellers in USD. These are still a small slice of the market and require careful risk management. Still, they show an incremental path for crypto holders to participate in home buying without liquidating assets.
You can buy a house with crypto in 2025, but most successful closings still run on U.S.-dollar rails by the time funds hit escrow. The deal is easiest when you work with experienced professionals, plan for taxes up front, lock exchange-rate terms in your contract, and choose title and escrow providers who can document AML/KYC and meet good-funds requirements. The legal ability is there; the value comes from getting the execution right.