Overview

• The 21st Century Mortgage Act would require Fannie Mae and Freddie Mac to include digital assets recorded on public blockchains as part of borrowers’ reserves without mandating conversion to dollars.
• Senator Cynthia Lummis says the legislation creates a modern pathway for younger Americans who hold cryptocurrency to build wealth and improve their chances of homeownership.
• FHFA Director William Pulte instructed the agencies in June to develop proposals for incorporating unconverted crypto holdings into single-family mortgage evaluations.
• Senate Democrats led by Elizabeth Warren warned in a July 25 letter that using volatile digital assets in underwriting could jeopardize housing market stability and broader financial system health.
• The bill’s future is uncertain as lawmakers debate its potential benefits for access to credit against risks posed by crypto’s price swings and liquidity challenges.