Senator Cynthia Lummis (R-WY) told followers on X(Twitter) on August 24 that she is pushing her 21st Century Mortgage Act to let cryptocurrencies count when people apply for home loans.
She said the bill would put into law a directive from Federal Housing Finance Agency Director William Pulte. That directive asks Fannie Mae and Freddie Mac to study how digital assets could be used in mortgage risk assessments.
Lummis wants the change so first-time buyers can use crypto holdings to prove their net worth when they apply for a mortgage.
What the bill would do?
The 21st Century Mortgage Act would require agencies to allow crypto held on any U.S. regulated centralised exchange to be part of a borrower’s assets.
The law would remove the need to first convert crypto into U.S. dollars for qualifying. Supporters say this would let people show equity in their balance sheets without forcing a sale.
Lummis said many digital asset owners are first-time home buyers and that buying a house is almost out of reach for them now.
She argued that including crypto in mortgage checks would help young Americans prove they are creditworthy. She said the bill is meant to give modern savers a fair shot at home ownership.
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How it would work?
If the law passes, lenders and the government-sponsored enterprises would have to consider crypto assets when doing risk assessments.
The proposal relies on centralised U.S. exchanges to verify balances. That is intended to limit fraud and provide a clear record of holdings.
Support and framing
Lummis framed the move as part of a digital age response, and she said lawmakers should not punish innovation but should update rules to fit new behaviour.
She argued that letting regulated exchanges qualify crypto for mortgages is a practical step that matches how many young people save and invest.
Questions and concerns
Crypto prices swing a lot and can fall fast, and lenders will need rules to value coins and to judge stability. There are also questions about custody, insurance and how quickly an exchange can prove a holding during a loan review.
The plan would codify a direction from FHFA Director William Pulte. That step would push Fannie and Freddie to build rules for crypto in mortgage exams. If the agencies follow, the change could reshape how mortgage underwriters view asset verification.
A larger crypto agenda
Lummis has also proposed a Strategic Bitcoin Reserve for the federal government. She said such a reserve could cut the national debt by 50% over 20 years. That idea shows she is trying to fold digital assets into wider fiscal policy as well as consumer finance.
For first-time buyers who hold crypto, the change could make loans easier to get. They would not have to sell holdings and realise taxable gains just to show assets. That could keep more capital working for down payments and closing costs.
If the law passes, lenders will need standards, and they will have to set rules for valuation, verification. How long holdings must be on an exchange will also need ways to factor volatility into loan terms.
Political path and timing
Lummis introduced the bill on July 29 and has been active in promoting it since then.
Making the FHFA directive a law will require debate in Congress and buy-in from agencies and lenders. The timeline will depend on hearings, amendments and votes.
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