Senator Lummis Proposes Bill to Include Crypto in Mortgage Evaluations

Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, a legislative push to modernize housing finance by requiring Fannie Mae and Freddie Mac to consider cryptocurrency holdings in mortgage approvals. The bill challenges traditional lending norms, aiming to reflect the financial behaviors of younger Americans who increasingly rely on digital assets for wealth accumulation.

The move follows a directive from Federal Housing Finance Agency Director William Pulte, formalizing the recognition of crypto assets without mandating conversion to fiat. Supporters argue this could expand homeownership opportunities for millennials and Gen Z, while critics led by Senators Elizabeth Warren and Bernie Sanders warn of potential market instability due to crypto's inherent volatility.