Wyoming Senator Cynthia Lummis rolled out new legislation on July 29 that could reshape how mortgage lenders evaluate borrowers who hold cryptocurrency. The 21st Century Mortgage Act would require Fannie Mae and Freddie Mac to recognize digital assets when determining whether someone qualifies for a single-family home loan, marking a significant departure from traditional underwriting practices.
The proposed law specifically mandates that government-sponsored enterprises accept assets stored on cryptographic ledgers as legitimate holdings. Perhaps more importantly, it would prevent lenders from forcing applicants to cash out their crypto investments just to have them counted in standard risk assessments.
Addressing Generational Wealth Shifts
Senator Lummis positioned the bill as a direct response to declining homeownership rates among younger Americans who increasingly store their wealth in digital form. Recent Census data reveals that only 36.6% of people under 35 own homes in the first quarter, while surveys indicate roughly 21% of American adults now hold some form of cryptocurrency. Among crypto holders, approximately two-thirds are younger than 45.
“Rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward-thinking generation,” Lummis explained in her announcement.
🇺🇸 JUST IN: Senator Lummis introduces bill to require govt. entities to consider digital assets in mortgage loan assessments pic.twitter.com/uqeloEW3iu
— Bitcoin Laws (@Bitcoin_Laws) July 29, 2025
Federal Housing Finance Agency Already Moving
The senator’s proposal arrives as the Federal Housing Finance Agency has already begun shifting its stance on digital assets. FHFA Director Bill Pulte recently directed both Fannie Mae and Freddie Mac to treat cryptocurrency reserves as valid assets when measuring single-family loan risk. He’s also ordered the agencies to develop frameworks for recognizing crypto balances without requiring liquidation first.
Pulte has launched a comprehensive review examining how Bitcoin and other digital holdings should influence mortgage decisions. The FHFA oversees major players in the housing finance ecosystem, including both government-sponsored enterprises and the Federal Home Loan Banks system.
This policy evolution represents a notable break from established practices where underwriters traditionally only accepted conventional assets like cash, securities, and retirement accounts. Cryptocurrency has historically been excluded due to price volatility concerns and regulatory uncertainty.
While the changes would allow verified crypto holdings to count toward borrower capacity and risk calculations, they wouldn’t enable people to make actual mortgage payments using digital currencies. The recognition would simply place crypto on equal footing with traditional assets during the application process.
Market Outlook and Regulatory Momentum
This legislative push reflects broader regulatory shifts toward cryptocurrency acceptance under the current administration. The bill would essentially formalize policy changes already gaining traction within federal housing agencies, potentially accelerating mainstream adoption of digital assets in traditional financial systems.
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