Wyoming Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, a proposed law that would require US mortgage purchasers Fannie Mae and Freddie Mac to consider digital assets as part of single-family loan applications. This bill directly follows a June order from the US Federal Housing Finance Agency (FHFA) on the same matter.
Lummis stated that the legislation aims to provide an “innovative path to wealth-building” for young Americans who hold digital assets, allowing them to use their crypto holdings as collateral without having to convert them to fiat currency for housing loan applications. This comes as homeownership for Americans under 35 stands at roughly 36% as of Q1 2025.
However, the proposal isn’t without its critics. Several Senate Democrats have voiced concerns to FHFA Director William Pulte, urging a full assessment of the risks and benefits of incorporating crypto into mortgage applications, citing potential volatility and liquidity issues that could impact borrowers’ ability to avoid default.
The crypto-mortgage bill is one of several digital asset-related pieces of legislation the Senate may consider after its upcoming August recess. Other bills include one to establish a digital asset market structure and another to bar the Federal Reserve from launching a central bank digital currency, which already passed the House. The House, also on recess, has a similar proposal from Republican Representative Nancy Mace, the American Homeowner Crypto Modernization Act, which would require lenders to consider digital assets in brokerage accounts.
Internationally, Australia-based company Block Earner announced plans in July to roll out Bitcoin-backed mortgages, offering a similar avenue for crypto holders, following a favorable court ruling regarding its crypto lending products.
July 2025, Cryptoniteuae
