U.S. Senator Cynthia Lummis Introduces Bill to Allow Crypto Assets in Mortgage Applications
WASHINGTON, D.C. — Senator Cynthia Lummis of Wyoming has introduced the 21st Century Mortgage Act. This new legislative proposal could officially require U.S. mortgage buyers to consider crypto assets as part of single-family loan applications.
This bill seeks to codify a directive issued in June by the Federal Housing Finance Agency (FHFA), which instructed mortgage giants Fannie Mae and Freddie Mac to factor in cryptocurrencies held by applicants during the underwriting process.
“This legislation represents an innovative step toward wealth-building for younger Americans, many of whom are already investing in crypto,” Senator Lummis said in a public statement.
Crypto as a Financial Asset in Mortgage Lending
If passed, the law would allow homebuyers to list their crypto holdings—without converting them to fiat currency or pledging them as collateral—when applying for a mortgage. This move could potentially open the housing market to millions of younger Americans, a demographic increasingly priced out of homeownership.
According to recent U.S. Census Bureau data, homeownership among Americans under 35 years old was approximately 36% in Q1 2025, highlighting the growing affordability crisis for younger generations.
Opposition from Senate Democrats
The FHFA directive has already sparked pushback from several Senate Democrats. In a July 24 letter to FHFA Director William Pulte, lawmakers warned about the risks of relying on volatile and illiquid crypto assets for mortgage approval.
“Given crypto’s historic volatility, borrowers may struggle to convert their assets into cash quickly enough to prevent mortgage defaults,” the letter stated.
The senators urged the FHFA to conduct a comprehensive risk-benefit analysis before fully integrating digital assets into the housing finance system.
Crypto Mortgage Legislation Gains Momentum in Congress
Lummis’s proposal joins a growing list of crypto-related bills under Senate consideration before the chamber recesses for August. She is also co-sponsoring a broader bill to establish a federal regulatory framework for digital asset markets, as well as a separate measure to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC).
Over in the House of Representatives, Rep. Nancy Mace (R-SC) introduced a similar bill—the American Homeowner Crypto Modernization Act—on July 14. That bill would require mortgage lenders to account for crypto assets held in brokerage accounts linked to crypto exchanges during credit assessments.
Global Trends: Crypto-Backed Mortgages Emerge
Outside the U.S., crypto-backed mortgages are gaining traction. In July, Australian fintech firm Block Earner announced plans to offer Bitcoin-backed mortgages, enabling borrowers to retain their digital assets while purchasing property.
Interestingly, the announcement followed a Federal Court ruling in Australia stating that Block Earner’s crypto lending products did not qualify as traditional financial products under the country’s Corporations Act, potentially easing regulatory pressure.
Final Thoughts
The 21st Century Mortgage Act marks a significant shift in how digital assets could be integrated into traditional finance, especially in the real estate sector. While the bill faces political hurdles, its introduction reflects the growing mainstream acceptance of cryptocurrency as a viable form of wealth.
As lawmakers debate the risks and rewards of crypto mortgages, younger Americans and digital asset holders could soon find new opportunities in an evolving housing market.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making any investment or financial decisions.
