What’s Happening
On July 29, 2025, Senator Cynthia Lummis (R‑Wyo.), USA, introduced the 21st Century Mortgage Act, a proposal that would officially require Fannie Mae and Freddie Mac to count your cryptocurrency holdings when assessing mortgage eligibility. This new bill would let borrowers include crypto assets—such as Bitcoin—without having to convert them to U.S. dollars first.
Why It Matters
Many young Americans now hold significant portions of their savings in cryptocurrency. Yet homeownership rates for those under 35 remain low—just 36.6% as of early 2025, the lowest since the 1980s. At the same time, 21% of U.S. adults own crypto, with two-thirds under age 45. Senator Cynthia Lummis believes the legislation helps bridge the gap between modern financial habits and traditional mortgage rules.
What the Bill Would Do
- Treat crypto assets stored on U.S.-regulated exchanges or in qualified custodial accounts as eligible assets during mortgage assessments.
- Without forcing liquidation—you wouldn’t need to sell crypto just to qualify.
- Require Fannie Mae and Freddie Mac to consider risk adjustments—like discounting crypto value to account for price swings.
What Isn’t Changing
- You cannot pay your mortgage in crypto—income, credit score, and traditional financial strength still matter.
- Crypto could be valued at a discount (perhaps 70–80%) to reflect volatility.
- Eligibility still depends on verification—assets must be securely held and tracked.
Support and Concerns
Supporters say it brings mortgage rules into the digital age and makes financing accessible to crypto-savvy buyers.
Critics—including Senators Elizabeth Warren, Bernie Sanders, Chris Van Hollen, Jeff Merkley, and Mazie Hirono—warn that volatile and illiquid assets could worsen mortgage default risk. They argue taxpayers could ultimately bear the burden if defaults rise.
Why the Timing and Broader Context Matter
Senator Lummis’ bill aligns with a directive issued in June 2025 by the Federal Housing Finance Agency (FHFA). That directive formally asked Fannie Mae and Freddie Mac to begin planning how to include crypto as asset reserves in mortgage evaluations—even before converting them to cash.
Both efforts signal the U.S. is moving toward recognizing crypto’s role in mainstream finance—even as debates about central bank digital currency (CBDC) and broader digital asset regulation intensify.
Final Thoughts
The 21st Century Mortgage Act could be a big shift for crypto investors—letting you use Bitcoin or other digital assets to strengthen your mortgage application without selling them first. However, it is still early days: volatility, valuation methods, and political hurdles remain key challenges. If you’re exploring crypto as part of your home-buying journey, it’s wise to stay updated as this legislation moves through Congress—and consider working with lenders familiar with digital assets.
