WASHINGTON—Sen. Cynthia Lummis (R-WY) has introduced legislation that would solidify a recent federal directive requiring mortgage lenders to factor in digital assets like cryptocurrency when evaluating applications, Cointelegraph reported.
The 21st Century Mortgage Act, unveiled Tuesday, seeks to codify a June order from the Federal Housing Finance Agency (FHFA) instructing mortgage giants Fannie Mae and Freddie Mac to “consider cryptocurrency as an asset for single-family loans.”
“This legislation embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets,” Lummis stated.
However, the FHFA’s order has already drawn opposition from several Senate Democrats, who urged FHFA Director William Pulte in a July 24 letter to thoroughly examine both the risks and benefits of incorporating crypto into mortgage underwriting. They expressed concern about the volatility and liquidity issues surrounding digital assets, warning that borrowers might struggle to convert crypto to cash when needed, increasing default risk, Cointelegraph noted.
Lummis emphasized that her bill aims to support younger Americans—particularly those locked out of homeownership—by allowing them to use crypto holdings as collateral without requiring conversion to fiat currency. According to U.S. Census Bureau data, homeownership among Americans under 35 stood at just 36% in Q1 2025.
The crypto-mortgage measure is one of three bills the Senate may take up following its upcoming month-long recess, Cointelegraph added.