Senator Lummis Drops Game-Changer: Fannie & Freddie Must Now Consider Crypto in Mortgage Risk Assessments

Washington shakes as crypto storms the mortgage market—again.

Senator Cynthia Lummis just lobbed a regulatory grenade into the housing finance sector. Her new bill forces Fannie Mae and Freddie Mac to factor crypto holdings into mortgage risk calculations. No more pretending digital assets don’t exist when determining loan eligibility.

The move could turbocharge crypto adoption—or expose how recklessly lenders chase yield in a zero-rate world. Either way, it’s a win for Bitcoin maximalists and a headache for underwriters still using fax machines.

Wall Street’s response? A collective shrug—followed by frantic backroom meetings to exploit loopholes before the ink dries. Because nothing unites traditional finance like finding new ways to gamble with other people’s money.

Crypto gaining momentum

The legislation WOULD codify a policy shift already underway at the Federal Housing Finance Agency (FHFA).

Director Bill PulteFannie 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 aof 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.