Senator Lummis Drops Bombshell Bill: Forces Feds to Finally Acknowledge Crypto as Wealth-Building Powerhouse

Washington’s crypto cold war heats up as Senator Cynthia Lummis slams regulators with legislation demanding they recognize digital assets’ wealth-generation potential. The move comes as traditional finance scrambles to keep pace with blockchain’s disruptive force.

The bill—dubbed the 'Financial Innovation Liberation Act'—puts federal agencies on notice: adapt or become obsolete. It mandates clear crypto taxation guidelines and retirement account inclusion, effectively forcing legacy institutions to confront decentralized finance head-on.

Wall Street analysts predict fierce resistance from banking lobbyists—after all, nothing terrifies old-money gatekeepers more than everyday investors building wealth outside their 1%-friendly systems. The legislation could trigger the biggest financial infrastructure overhaul since the creation of IRAs.

As the SEC continues its regulation-by-enforcement approach, Lummis’ bill offers a rare legislative path forward. One banking exec anonymously quipped: 'Guess we’ll have to find new ways to charge 2% management fees on self-custodied assets.'

Why crypto could be the missing piece in America’s homeownership crisis

Senator Lummis’ push to include crypto in mortgage assessments is a direct response to a generational wealth gap that has left millions of young Americans locked out of homeownership. With U.S. Census Bureau data showing just 36.6% of adults under 35 own homes, the lowest rate since tracking began in 1982, traditional paths to property ownership are failing.

Meanwhile, digital assets have emerged as a primary wealth-building tool for this same demographic, with 21% of U.S. adults now holding cryptocurrency, and 67% of those investors under 45.

“The American dream of homeownership is not a reality for many young people,” Lummis said. “This legislation embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets. 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.”

But while Lummis frames the MOVE as financial progress, Democratic lawmakers see it as a gamble. Senator Elizabeth Warren, Bernie Sanders, and others warned in a letter to Pulte that allowing volatile digital assets into mortgage underwriting could “pose risks to the stability of the housing market and the financial system.”