In a groundbreaking move, Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, aiming to integrate Bitcoin and Ethereum into mortgage eligibility. This could be a game-changer for young Americans facing a 36.6% homeownership gap. Will this bridge the divide between crypto wealth and traditional housing finance?
What is the Lummis Bill and How Does It Work?
The 21st Century Mortgage Act mandates that government-sponsored enterprises like Fannie Mae and Freddie Mac consider digital assets in mortgage risk assessments. Key points:
- Digital assets must be recorded on cryptographically-secured ledgers.
- Conversion to fiat currency is prohibited, emphasizing ‘digital wealth.’
- Aligns with FHFA Director William Pulte’s 2025 directive on crypto mortgages.
Why Focus on Digital Assets for Mortgage Eligibility?
With 21% of U.S. adults owning cryptocurrency and 67% under 45, traditional mortgage criteria may no longer reflect financial realities. This bill addresses:
- The 36.6% homeownership rate among Americans under 35.
- Wealth tied to volatile assets like Bitcoin and Ethereum.
- Documentation gaps for younger generations.
Challenges and Controversies
While transformative, the bill faces hurdles:
- Cryptocurrency price volatility complicates risk assessments.
- Standardizing valuation methods for digital assets.
- Adapting existing mortgage frameworks for crypto’s unique characteristics.
The Bigger Picture: U.S. as a Crypto Leader
This bill is part of a broader strategy to position the U.S. as a global leader in cryptocurrency innovation. Earlier in 2025, Lummis collaborated on market structure legislation to clarify regulatory ambiguities.
FAQs
Q: How will lenders assess the value of digital assets?
A: The bill requires robust mechanisms to verify authenticity and value without compromising consumer protections.
Q: What percentage of young Americans own cryptocurrency?
A: 67% of crypto holders are under 45, with 21% of U.S. adults owning digital assets.
Q: Will this make mortgages riskier?
A: While crypto volatility is a concern, the bill aims to balance innovation with systemic risk management.
Q: When could this bill take effect?
A: The timeline depends on legislative approval and regulatory adaptations.
