Lummis Bill Proposes Crypto as Asset for Mortgages

- Bill would require Fannie Mae and Freddie Mac to consider cryptocurrencies as an asset. - Opponents raise concerns over digital asset volatility. On July 29, 2025, The Block reported that Senator Cynthia Lummis (R-WY) introduced the 21st Century Mortgage Act. The proposed legislation requires government-sponsored enterprises Fannie Mae and Freddie Mac to evaluate cryptocurrencies as assets when assessing mortgage risks for single-family homes. These digital assets are recorded on cryptographically-secured distributed ledgers. Additionally, the bill prevents the forced conversion of cryptocurrency holdings into U.S. dollars. The bill codifies a June 2025 directive from William Pulte, Director of the Federal Housing Finance Agency (FHFA). Under the directive, the FHFA will oversee how Fannie Mae and Freddie Mac incorporate digital assets into their mortgage underwriting processes. This step will align their credit evaluations with evolving financial trends. In a statement, Senator Lummis emphasized that the bill creates pathways for wealth-building, noting that younger generations increasingly own digital assets. She described the legislation as a necessary adaptation to a "digital age" and highlighted its goal to modernize financial systems for a "modern, forward-thinking generation." However, the proposal has sparked concerns among Democratic lawmakers. In a letter to Director Pulte, Senator Elizabeth Warren, Independent Senator Bernie Sanders, and other Congressional Democrats expressed caution. They warned that integrating cryptocurrencies into mortgage risk assessments could introduce volatility and potentially undermine housing market stability. They argued that the price fluctuations of digital assets pose risks to the broader financial system and add new uncertainties to credit evaluations.