Senator Cynthia Lummis (R‑Wyo.) introduced the 21st Century Mortgage Act on July 29, legislation that aims to bring US underwriting into the digital era by requiring Fannie Mae and Freddie Mac to consider digital assets when assessing single‑family mortgage eligibility.
The bill directs the government‑sponsored enterprises to recognize assets recorded on cryptographically secured ledgers and bars lenders from forcing borrowers to convert those holdings to dollars simply to be counted in risk models.
Lummis framed the measure as a response to a homeownership slump among younger Americans and the reality that many now build savings in crypto.
She stated:
“Rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward‑thinking generation.”
Furthermore, the Senator noted Census data showing homeownership under age 35 at 36.6% in the first quarter and survey estimates that 21% of US adults hold cryptocurrency, with two‑thirds of owners under 45.
Crypto gaining momentum
The legislation would codify a policy shift already underway at the Federal Housing Finance Agency (FHFA).
Director Bill Pulte has ordered Fannie and Freddie to treat cryptocurrency reserves as eligible assets in single‑family loan risk measurements and to draft plans for recognizing those balances without first liquidating them.
He also announced a broader review of how digital asset holdings, including Bitcoin, should factor into mortgage evaluations.
The FHFA oversees the housing finance system, including Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, and its moves mark a break from past practice in which underwriters typically accepted cash, securities, and retirement accounts but excluded crypto because of volatility and unclear rules.
Recognition would not permit borrowers to repay mortgages in crypto, although it would allow verified digital asset balances to be counted alongside traditional assets in capacity and risk tests.
The bill comes amid a wider shift among regulators toward crypto policy under the current US administration.
