New Senate Bill Aims to Integrate Crypto into Mortgage Collateral

Senator Cynthia Lummis has introduced legislation that would formally recognize cryptocurrency as acceptable collateral for mortgage applications. The bill follows a June directive from the Federal Housing Finance Agency encouraging federal mortgage entities to consider digital assets in loan evaluations.

"This is about modernizing wealth-building tools," Lummis stated, noting widespread crypto adoption among younger Americans. Recent Census data shows only 36% of Americans under 35 own homes—a gap this policy could address by allowing crypto holdings to count toward loan qualifications without requiring conversion to fiat currency.

The proposal faces skepticism from Democrats concerned about volatility risks in housing finance. If passed, lenders WOULD assess crypto assets directly during mortgage underwriting, potentially creating new pathways to homeownership for digital asset holders.