Senator Lummis’s new bill forces federal agencies to confront crypto’s role in wealth building

Senator Lummis is dragging federal housing agencies into the 21st century with a bill that mandates crypto be recognized in mortgage approvals. The move challenges decades-old lending rules, potentially opening doors for young buyers, but critics warn it could destabilize the system.

On July 29, U.S. Senator Cynthia Lummis introduced the 21st Century Mortgage Act, a bill that would require Fannie Mae and Freddie Mac to factor cryptocurrency into single-family mortgage evaluations.

The proposal codifies a recent directive from Federal Housing Finance Agency Director William Pulte and would formally instruct the two government-sponsored enterprises to consider digital assets held on public blockchains as part of borrowers’ financial profiles, without requiring conversion into U.S. dollars.

According to Lummis, the legislation aims to modernize mortgage eligibility criteria to reflect how an increasing number of younger Americans store and grow their wealth.

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.

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.”