U.S. Senator Cynthia Lummis (R-WY) is introducing a mortgage reform bill to recognize crypto assets in home loan eligibility assessments. The 21st Century Mortgage Act will require government-sponsored enterprises to consider digital assets when assessing single-family mortgage eligibility.

“The American dream of homeownership is not a reality for many young people,” Lummis said this week. “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.”

Under the proposed bill, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) must include digital assets recorded on a cryptographically-secured distributed ledger as part of their mortgage risk assessments for single-family home loans. Furthermore, the bill would prohibit forcing the conversion of these assets into dollars, respecting the nature of digital wealth.

The crypto for mortgages directive represents the first federal recognition of digital assets in conventional lending. Since 2008, both GSEs have operated under government conservatorship, purchasing mortgages from lenders to maintain market liquidity. This crypto assets mortgage risk integration could affect millions of mortgage applications. The Fannie Mae crypto guidelines will establish precedents for how lenders evaluate digital asset holdings, while Freddie Mac’s digital assets policies will complement these standards. This is a major shift in how the mortgage industry operates.

Already, several institutions offer crypto-backed lending. JPMorgan plans to allow wealth management clients to use Bitcoin ETFs as collateral. Additionally, Circle’s USDC stablecoin will become eligible collateral for futures trading next year through Coinbase Derivatives and Nodal Clear.

U.S. Senator Cynthia Lummis (R-WY) is introducing a mortgage reform bill to recognize crypto assets in home loan eligibility assessments. The 21st Century Mortgage Act will require government-sponsored enterprises to consider digital assets when assessing single-family mortgage eligibility.

“The American dream of homeownership is not a reality for many young people,” Lummis said this week. “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.”

Under the proposed bill, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) must include digital assets recorded on a cryptographically-secured distributed ledger as part of their mortgage risk assessments for single-family home loans. Furthermore, the bill would prohibit forcing the conversion of these assets into dollars, respecting the nature of digital wealth.

The crypto for mortgages directive represents the first federal recognition of digital assets in conventional lending. Since 2008, both GSEs have operated under government conservatorship, purchasing mortgages from lenders to maintain market liquidity. This crypto assets mortgage risk integration could affect millions of mortgage applications. The Fannie Mae crypto guidelines will establish precedents for how lenders evaluate digital asset holdings, while Freddie Mac’s digital assets policies will complement these standards. This is a major shift in how the mortgage industry operates.

Already, several institutions offer crypto-backed lending. JPMorgan plans to allow wealth management clients to use Bitcoin ETFs as collateral. Additionally, Circle’s USDC stablecoin will become eligible collateral for futures trading next year through Coinbase Derivatives and Nodal Clear.