U.S. Senator Cynthia Lummis (R‑WY) has unveiled the 21st Century Mortgage Act, a proposed legislative reform that would mandate Fannie Mae and Freddie Mac to consider cryptocurrency holdings when determining eligibility for single-family home loans.
Under the terms of the bill, digital assets securely recorded on blockchain ledgers—from Bitcoin and Ethereum to other qualifying tokens—would be evaluated alongside traditional income and credit metrics. Notably, the legislation forbids requiring applicants to convert their crypto holdings into fiat currency during the mortgage qualification process.
🔑 Why It Matters
- Broadening access to homeownership: Lummis emphasized that the bill “embraces an innovative path to wealth-building” and aims to support younger Americans who hold digital assets as a growing share of their net worth.
- First federal step toward crypto-recognized lending: This would be the first time U.S. federal mortgage policy formally legitimizes digital currencies as part of borrower assessments.
- Significant industry impact: Should the bill pass, it could reshape underwriting guidelines used by Ginnie Mae–backed institutions, potentially expanding mortgage approvals for millions of crypto-holding consumers.
🛠 What Comes Next
The legislation is still in its early stages. Key details—including which crypto assets qualify, valuation methodology, and how risk is assessed—await further clarity from policymakers and regulators. Critics have raised concerns over the volatility of crypto, custody issues, and borrower protection. Still, proponents argue this is an important modernization of lending policy, aligning with broader efforts to integrate digital finance into traditional systems.
