Key Takeaways:
- Senator Cynthia Lummis introduced the 21st Century Mortgage Act to allow digital assets like cryptocurrency to be considered in mortgage applications.
- Senate Democrats have raised concerns about crypto’s volatility and liquidity, urging caution in its use for mortgage risk assessments.
- A parallel bill in the House and growing international interest reflect increasing momentum for crypto-backed housing solutions.
The U.S. Senate is reviewing new legislation that could allow cryptocurrency holdings to be considered in mortgage applications.
Introduced by Senator Cynthia Lummis, the 21st Century Mortgage Act supports a June directive from the Federal Housing Finance Agency (FHFA) urging Fannie Mae and Freddie Mac to recognize digital assets in risk assessments for single-family loans.
JUST IN: 🇺🇸 Senator Cynthia Lummis introduces mortgage reform bill to recognize crypto assets in home loan eligibility assessments.
— Watcher.Guru (@WatcherGuru) July 29, 2025
Lummis argues the bill could help young Americans – only 36% of whom currently own homes – use their crypto assets as collateral without needing to convert to fiat.
However, Senate Democrats voiced concerns in a July 24 letter to FHFA Director William Pulte, warning that crypto’s volatility and liquidity could heighten default risks.
In the House, Rep. Nancy Mace introduced a similar bill, the American Homeowner Crypto Modernization Act, requiring mortgage lenders to consider crypto held in brokerage accounts.
This comes amid broader efforts to define a regulatory framework for digital assets and a Senate review of a proposal to ban a central bank digital currency (CBDC).
Globally, crypto-backed housing is gaining traction; in Australia, Block Earner announced plans for Bitcoin-backed mortgages following a favorable Federal Court ruling.
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Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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