Wyoming Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, legislation designed to incorporate digital assets into the mortgage approval process. This bill follows the Federal Housing Finance Agency’s (FHFA) June order instructing Fannie Mae and Freddie Mac to consider cryptocurrency as an asset for single-family loans.
Senator Lummis announced the proposed bill, emphasizing its alignment with the FHFA’s directive. The 21st Century Mortgage Act seeks to codify the FHFA order, providing a legislative framework for the consideration of digital assets in mortgage applications. Lummis stated, “This legislation embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets.” The bill aims to address hurdles faced by younger individuals in securing affordable housing by allowing their cryptocurrency holdings to be assessed as collateral for housing loan applications without requiring conversion to fiat currency.
The FHFA’s June order has drawn scrutiny from some Senate Democrats, who have raised concerns about the potential risks and benefits of integrating cryptocurrency into mortgage assessments. These senators, in a July 24 letter, urged FHFA Director William Pulte to conduct “a full assessment of the potential risks and benefits” of including crypto in mortgage applications, along with its possible impact on the broader housing market and financial system. Their letter highlighted the inherent risks associated with cryptocurrency’s volatility and liquidity. “To the extent that historical volatility and liquidity persists even as the market matures, a borrower using crypto faces an increased risk that they may not be able to exit a crypto position and convert to cash at a price that would allow them to buffer against risk of mortgage default,” the letter stated.
Lummis countered these concerns by citing US Census Bureau data, which indicates a relatively low homeownership rate among younger Americans. Data suggests that homeownership for US residents under the age of 35 was about 36% as of the first quarter of 2025. The proposed legislation is intended to assist this demographic by recognizing the potential value of their digital asset holdings.
The 21st Century Mortgage Act is one of several crypto-related bills that the Senate may deliberate on following its August recess. Lummis is also involved in a bill focused on establishing a digital asset market structure within the Senate. Furthermore, a bill aimed at preventing the Federal Reserve from launching a central bank digital currency, which passed in the House of Representatives in July, is also under consideration.
