Wyoming Senator Cynthia Lummis has introduced legislation that could formalize the inclusion of cryptocurrency assets in mortgage approval processes, potentially opening homeownership opportunities for younger Americans holding digital assets.
The 21st Century Mortgage Act would codify a June order from the US Federal Housing Finance Agency (FHFA) requiring mortgage purchasers Fannie Mae and Freddie Mac to “consider cryptocurrency as an asset for single-family loans.” According to Lummis, this legislation “embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets.” She noted that homeownership for US residents under 35 was approximately 36% as of the first quarter of 2025, based on US Census Bureau data.
The proposed bill targets young Americans struggling to find affordable long-term housing who would not be forced to convert their cryptocurrency holdings into fiat currency, allowing them to use digital assets as collateral in mortgage applications. This move is seen as a potential game-changer for those who hold significant amounts of cryptocurrency but may not have the traditional financial assets typically required for mortgage approvals.
However, several Senate Democrats have expressed concerns about the volatility and liquidity of crypto assets. In a letter to FHFA Director William Pulte dated July 24, they wrote, “To the extent that historical volatility and liquidity persists even as the market matures, a borrower using crypto faces an increased risk that they may not be able to exit a crypto position and convert to cash at a price that would allow them to buffer against risk of mortgage default.” They requested a full assessment of the risks and benefits associated with considering cryptocurrency as an asset for mortgage applications.
The crypto-mortgage legislation is one of three crypto-related bills that the Senate may consider after its August recess. In addition to the mortgage bill, Lummis is co-leading legislation aimed at establishing a digital asset market structure. Another bill, focused on preventing the Federal Reserve from launching a central bank digital currency, has already passed the House.
In a related development, Representative Nancy Mace introduced a companion proposal on July 14 called the American Homeowner Crypto Modernization Act. This bill would require mortgage lenders “to consider, in the mortgage credit evaluation process, the value of any digital assets a borrower has in any brokerage account associated with a cryptocurrency exchange.”
Internationally, the concept of cryptocurrency-backed mortgages is also gaining traction. In July, Australia-based company Block Earner announced plans to roll out Bitcoin-backed mortgages following a Federal Court of Australia ruling that the company’s crypto lending products did not qualify as financial products under the country’s Corporations Act. This move highlights the growing global interest in integrating cryptocurrency into traditional financial products and services.
