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Lummis Introduces 21st Century Mortgage Act to Recognize Crypto in Mortgage Underwriting

It codifies an FHFA directive to factor digital assets into borrowers’ reserves as a bid to boost homeownership among under-35 Americans.

Senator Lummis Bill forces federal agencies to confront crypto’s role in wealth building
New lummis bill would back effort to ensure crypto assets can justify u.s. mortgages
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Overview

  • Senator Cynthia Lummis formally introduced the 21st Century Mortgage Act on July 29, 2025, to require Fannie Mae and Freddie Mac to include cryptocurrency holdings in mortgage evaluations without converting them to U.S. dollars.
  • The bill enshrines a June directive from FHFA Director William Pulte, who ordered the government-backed enterprises to draft plans for counting digital assets as borrower reserves.
  • Supporters argue the measure reflects modern wealth-building trends and could help close the gap behind the 36.6% homeownership rate for adults under 35, the lowest since 1982.
  • Leading Democrats including Senators Elizabeth Warren, Bernie Sanders, Chris Van Hollen, Jeff Merkley and Mazie K. Hirono warn that volatile crypto assets could threaten housing market and financial system stability.
  • The legislation now moves to Congress, where its future is uncertain amid debates over balancing innovation in mortgage lending with potential systemic risks.