According to sources, the crypto mortgage bill led by Senator Cynthia Lummis is pushing U.S. housing agencies to update their lending rules by officially including digital assets in mortgage decisions.
The bill, called the 21st Century Mortgage Act, would require Fannie Mae and Freddie Mac to consider people’s cryptocurrency holdings, without changing them into U.S. dollars, when reviewing mortgage applications.
The goal of the crypto mortgage bill is to help more young Americans, especially those under 35, become homeowners by recognizing crypto as part of their wealth.
What does the crypto mortgage bill propose?
The crypto mortgage bill introduced by Senator Cynthia Lummis requires government-backed lenders like Fannie Mae and Freddie Mac to include crypto holdings on public blockchains when assessing mortgage applications.
Importantly, the bill makes it clear that borrowers won’t have to convert their crypto into regular money, helping to keep their digital assets intact and recognized as part of their financial worth. According to Senator Cynthia Lummis, digital assets are now a key part of how younger people grow their wealth, not something unusual or on the edge.
She believes it’s time for financial institutions to recognize this shift. The crypto mortgage bill she introduced aims to turn the current advice from FHFA Director William Pulte into a formal law so that it’s taken seriously and applied consistently.
Why is Senator Cynthia Lummis pushing for crypto in mortgages?
Senator Cynthia Lummis brought forward the crypto mortgage bill because she sees that younger and older generations build wealth differently. As many young people are turning to crypto, she believes mortgage rules should reflect that shift.
According to the U.S. Census Bureau data, only 36.6% of Americans under the age of 35 own homes, which is the lowest level seen since 1982. At the same time, more young people are choosing to invest in crypto, with 21% of U.S. adults now owning digital assets. The bill aims to update lending rules so they better reflect how younger Americans manage and grow their money today.
A policy expert from the Digital Asset Policy Alliance said, “Young people are saving and investing wisely, but banks still follow old rules that don’t recognize their crypto assets. The crypto mortgage bill is meant to give them a fair chance at buying a home.”
| Aspects | Description |
| Bill Name | 21st Century Mortgage Act |
| Introduced By | Senator Cynthia Lummis |
| Date Introduced | July 29, 2025 |
| Purpose | Count crypto as loan collateral |
| Key Provisions | Use crypto as assets, no USD needed |
| Regulatory Context | Aligns with FHFA on crypto mortgage rules |
| Target Demographic | Young Americans turn to crypto for wealth |
| Potential Benefits | Broadens mortgage eligibility via crypto |
| Opposition Concerns | Crypto volatility and market stability risks |
| Current Status | Proposed legislation |
What are the criticisms surrounding the crypto mortgage bill?
Even though the crypto mortgage bill is meant to support financial progress, it has faced criticism. Lawmakers like Elizabeth Warren and Bernie Sanders, who work alongside Senator Cynthia Lummis, worry that adding crypto to mortgage evaluations could make the housing market unstable.
In a letter to FHFA Director Pulte, they warned that digital assets are too risky for something as important as the housing sector. They explained that crypto prices can change quickly, and some assets are tied to scams or may be hard to sell when needed, which could lead to serious financial problems.
They believe this makes crypto a risky option for use in mortgage decisions. They also warn that during market booms, the value of crypto-backed assets might seem high, but in a downturn, that value could drop fast, possibly leading to foreclosures or people being unable to repay their loans.
Could crypto assets help more young people qualify for a mortgage?
If passed, the crypto mortgage bill would update how mortgage lenders check a person’s financial background. Instead of looking only at bank savings or income, they would also count digital assets like Bitcoin, Ethereum, or stablecoins.
This change could help more young people, particularly those who’ve built their wealth through crypto, get approved for a home loan. It’s a step toward making the housing market more open to today’s digital generation.
Mortgage experts are hopeful but careful about the crypto mortgage bill. Sarah Montoya, a housing economist at BlockFi Research, said the bill shows how the system is starting to change.
She believes that if it’s handled the right way, it could make home loans fairer without creating new risks for lenders. For the crypto mortgage bill to move forward, it must win support from both parties in Congress. But with strong disagreements over crypto’s place in the financial system, that won’t come easy.
Conclusion
Based on the latest research, the crypto mortgage bill introduced by Senator Cynthia Lummis could change how housing works in the U.S., but not without debate. It gives hope to younger people, who are using crypto to build wealth, yet some fear it might put lenders at risk.
The future of the crypto mortgage bill now rests on how well lawmakers can define what counts as trustworthy digital assets, and whether Congress is truly prepared to blend modern finance with traditional lending
Summary
Senator Cynthia Lummis wants federal mortgage agencies to count bitcoin and other cryptocurrencies when deciding who qualifies for a home loan. Her new crypto mortgage bill is meant to help young buyers. Applicants wouldn’t have to change their crypto into dollars. Supporters see it as a smart way to modernize old lending standards, but critics warn it could shake up an already fragile housing market. For now, the bill’s future is uncertain as Congress is divided on using crypto in mortgages.
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FAQs
1. What does the crypto mortgage bill require lenders to do?
Include crypto holdings in mortgage application reviews.
2. Who introduced the crypto backed mortgage bill?
Senator Cynthia Lummis.
3. Who has to follow the new crypto mortgage rules?
Fannie Mae and Freddie Mac.
4. What concern did Elizabeth Warren raise about the bill?
Crypto’s price volatility could destabilize the housing market.
5. How many U.S. adults currently own crypto?
About 21%.
Glossary
Crypto Mortgage Bill- A Law proposal to count crypto as part of a homebuyer’s assets.
21st Century Mortgage Act-The bill’s official name, by Senator Cynthia Lummis, to update lending rules.
Fannie Mae & Freddie Mac- Federal agencies that back and manage U.S. home loans.
Public Blockchain- An Open system where crypto holdings and activity are visible.
Mortgage Eligibility- Lender checks to see if you qualify for a home loan.
FHFA- U.S. regulator that oversees housing finance and lenders.
Sources
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