Lummis Introduces Crypto Mortgage Bill to Bridge Wealth Gap for Digital Asset Holders

Senator Cynthia Lummis, a staunch crypto advocate, has proposed legislation allowing mortgage borrowers to use cryptocurrency holdings as loan collateral without mandatory fiat conversion. The bill aligns with recent Federal Housing Finance Agency directives urging Fannie Mae and Freddie Mac to explore crypto-backed mortgage options.

"This embraces an innovative path to wealth-building for young Americans holding digital assets," Lummis stated, framing the move as a solution for unattainable homeownership. The legislation specifically permits qualified custodial arrangements for crypto reserves, mirroring FHFA Director William Pulte's existing initiative.

Market observers question the bill's congressional prospects amid ongoing regulatory debates. As Banking Committee chair, Lummis continues pushing for institutional crypto integration, arguing government agencies must adapt to digital-native financial behaviors.