Lummis Proposes Bill to Allow Crypto as Collateral for U.S. Mortgages

Senator Cynthia Lummis, a staunch advocate for digital assets, has introduced legislation that would enable borrowers to use cryptocurrency holdings as collateral for mortgages without converting them to U.S. dollars. The bill aligns with recent directives from the Federal Housing Finance Agency, which urged Fannie Mae and Freddie Mac to explore crypto-backed mortgage options.

"This legislation embraces an innovative path to wealth-building, keeping in mind the growing number of young Americans who possess digital assets," Lummis said. The MOVE could potentially bridge the gap to home ownership for a generation increasingly invested in crypto.

The proposal underscores a broader shift toward institutional recognition of digital assets, though its legislative prospects remain uncertain. As Lummis noted, "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."