Lummis Proposes Crypto Inclusion in Mortgage Risk Checks

21st Century Mortgage Act and Crypto-Inclusive Legislation

Senator Cynthia Lummis introduced the 21st Century Mortgage Act on July 29, 2025, aiming to require Fannie Mae and Freddie Mac to include digital assets in mortgage risk assessments.

The legislative proposal could significantly impact how digital assets like cryptocurrencies are treated in mortgage applications, potentially influencing broader financial markets and investor practices.

The 21st Century Mortgage Act introduced by Senator Lummis requires Fannie Mae and Freddie Mac to include digital assets in mortgage risk assessments. This follows a June directive from the Federal Housing Finance Agency, potentially altering mortgage application protocols. For those interested, the Lummis bill aims to make homeownership more accessible for young Americans.

Senator Cynthia Lummis leads the legislative drive, emphasizing the need for government adaptation to a digital financial landscape. Meanwhile, Democrats like Elizabeth Warren highlight the risks associated with including cryptocurrencies in asset assessments due to their inherent volatility. As described in House Bill 4374 , there is an ongoing legislative discussion regarding mortgage lending reform.

The immediate effect could increase the accessibility of home ownership for those investing in digital assets. However, concerns regarding volatility and liquidity risks expressed by opponents raise questions about implementation and regulatory frameworks. Insights from CoinCentral .

By recognizing crypto as collateral, financial implications include reshaping mortgage underwriting criteria. However, the market impact remains uncertain as institutional bodies like Fannie Mae explore practical incorporation and risk mitigation strategies concerning crypto-backed mortgages. It has been discussed in detail in the current Senate Bill 2471 actions .

There are no direct U.S. precedents for incorporating digital assets in federal mortgage risk models. The move echoes international pilots and private lender crypto-backed mortgages outside the U.S., signaling a potential shift in national financial dynamics.

“This legislation embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets. We’re living in a digital age, and rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward-thinking generation.” – Senator Cynthia Lummis

Insights suggest regulatory developments could pave the way for widespread crypto acceptance in traditional finance. If successful, this legislation might set a precedent for other asset classes, although market and technological readiness remains a critical factor. Recent updates from Pro Trader Edge .