Senator Lummis Unveils Legislation to Let Cryptocurrency Count Toward Homeownership

In a landmark move that could reshape the future of mortgage lending, Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, a bill aimed at modernizing the U.S. housing finance system by recognizing digital assets such as cryptocurrency in mortgage underwriting. The legislation would require Fannie Mae and Freddie Mac the government-sponsored enterprises (GSEs) that back a large portion of the U.S. housing market to factor in crypto holdings when evaluating borrower eligibility for single-family mortgages.

The proposal directly supports a recent directive from Federal Housing Finance Agency (FHFA) Director William Pulte, who called on the GSEs to begin incorporating cryptocurrency as a form of financial strength in their risk assessment models. If passed, the bill would codify this directive, paving the way for Americans especially younger generations to leverage digital wealth in pursuit of homeownership.

“Proud to introduce the 21st Century Mortgage Act to make homeownership more accessible for young Americans who are embracing the digital age,” Senator Lummis posted on X (formerly Twitter).

Embracing Digital Wealth in a Changing Economy

Unlike traditional rules, which often require that cryptocurrency be converted to U.S. dollars and deposited into a bank account before being counted in a loan application, this legislation would prohibit mandatory liquidation, allowing crypto assets held on secure blockchain networks to be included as part of an applicant’s financial portfolio.

Senator Lummis explained that the bill is a response to the evolving financial habits of younger Americans, many of whom are building wealth through digital assets rather than traditional savings accounts or 401(k)s.

“The American dream of homeownership is slipping away for many young people,” Lummis stated. “By embracing innovative financial tools, we can provide new pathways to build wealth and enter the housing market without punishing innovation.”

Why It Matters Now

Homeownership rates among Americans under the age of 35 have dropped to 36.6%, the lowest figure since tracking began in the early 1980s, according to recent U.S. Census Bureau data. Meanwhile, cryptocurrency ownership has soared. A 2025 report by the National Cryptocurrency Association (NCA) shows that 21% of U.S. adults now hold crypto assets, and more than two-thirds of those investors are under 45.

With younger generations increasingly priced out of homeownership due to high mortgage rates, low housing inventory, and stagnant wages, the ability to apply their crypto holdings toward home purchases could open a critical door.

FHFA Director William Pulte, a vocal advocate for crypto integration into housing finance, has also publicly supported the change. According to federal disclosures, Pulte himself holds up to $1 million in bitcoin.

In a social media post from June, Pulte wrote:

“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, I’ve instructed Fannie Mae and Freddie Mac to prepare for accepting cryptocurrency as a qualifying asset in mortgage underwriting.”

What’s Next?

While FHFA’s current guidance requires that crypto be converted to U.S. dollars and stored in a regulated institution, the new bill would remove that requirement and instead call for recognition of the asset in its native form, provided it is verifiably held on a secure distributed ledger.

Under the legislation, Fannie Mae and Freddie Mac would be required to develop new underwriting proposals that incorporate these digital holdings without forcing borrowers to cash out their crypto before loan closing.

The bill represents a broader shift toward aligning public policy with modern financial realities. With a growing portion of wealth now existing outside traditional banking systems, policymakers are grappling with how to ensure access to the housing market without undermining safety or stability.

Bridging the Old and the New

Some critics have raised concerns about crypto’s price volatility and the risks it may pose to the stability of the mortgage system. However, the bill seeks to balance innovation with responsibility, by empowering GSEs to develop risk-adjusted frameworks that reflect the unique nature of digital assets while maintaining sound lending practices.

Supporters of the bill argue that acknowledging crypto is no longer a fringe concept it’s a necessity for financial inclusion in the 21st century.

In a time when economic barriers to homeownership are at their highest in decades, the 21st Century Mortgage Act may offer a much-needed update to outdated lending standards and give young, crypto-savvy Americans a fairer shot at owning a home. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.