Bitcoin News Today: Lummis Bill Integrates Digital Assets into Mortgage Eligibility to Address 36.6% Homeownership Gap Among Young Americans

Senator Cynthia Lummis (R-Wyo.) has introduced the 21st Century Mortgage Act, a legislative proposal aiming to integrate digital assets such as Bitcoin (BTC/USD) and Ethereum (ETH/USD) into mortgage eligibility assessments. The bill mandates that government-sponsored enterprises like Fannie Mae (FNMA) and Freddie Mac (FMCC) incorporate digital assets recorded on “cryptographically-secured distributed ledgers” into their risk evaluations for single-family home loans. Notably, the legislation prohibits converting these assets into fiat currency, emphasizing their status as “digital wealth.” Lummis highlighted the initiative’s focus on younger Americans, stating it aligns with the growing adoption of cryptocurrencies among younger demographics [1].

The proposal responds to a directive from Federal Housing Finance Agency (FHFA) Director William Pulte, who earlier in 2025 instructed Fannie Mae and Freddie Mac to consider cryptocurrency as a mortgage asset. This context underscores a shifting regulatory landscape, with policymakers increasingly recognizing the role of digital assets in personal finance. The bill’s timing also aligns with demographic trends: as of early 2025, homeownership among Americans under 35 remains at a historically low 36.6%, while 21% of U.S. adults own cryptocurrency, with 67% of crypto holders under 45 [1]. These figures suggest a potential disconnect between traditional mortgage criteria and the financial realities of younger generations, who may hold significant wealth in digital assets but face barriers to accessing housing due to conventional income or employment documentation gaps.

The proposal’s implications are both transformative and contentious. By allowing lenders to factor crypto holdings into mortgage underwriting, the bill could expand homeownership opportunities for individuals whose wealth is disproportionately tied to volatile assets. However, challenges remain. Unlike stable assets like savings accounts or stocks, cryptocurrencies are subject to rapid price swings, complicating risk assessments for lenders. Critics may also question how to standardize valuation methods for digital assets, ensuring transparency and fairness in loan approvals. Additionally, existing mortgage frameworks, designed for liquid and stable assets, may require substantial adaptation to accommodate crypto’s unique characteristics [1].

Lummis’s initiative is part of a broader strategy to position the U.S. as a global leader in cryptocurrency innovation. Earlier in 2025, she collaborated with fellow Republican senators to draft market structure legislation aimed at clarifying regulatory ambiguities and fostering industry growth. These efforts reflect a growing bipartisan recognition of digital assets’ economic significance. Yet, the success of the 21st Century Mortgage Act will depend on addressing technical and regulatory hurdles. For instance, developing robust mechanisms to verify the authenticity and value of digital assets—without compromising consumer protections—will be critical to gaining lender and borrower confidence [1].

The bill’s focus on younger homebuyers highlights a generational shift in financial behavior. As millennials and Gen Z increasingly embrace digital finance, their preferences may diverge from traditional norms. By aligning mortgage policies with this trend, Lummis’s proposal could bridge the gap between emerging financial ecosystems and established housing frameworks. However, the extent to which lenders adopt this approach will hinge on their ability to integrate crypto assets into underwriting processes without exacerbating systemic risks. For now, the bill remains a legislative priority for advocates of financial innovation, signaling a pivotal moment in the intersection of fintech and housing policy [2].

Sources:

[1] Yahoo Finance, [url](https://finance.yahoo.com/news/cynthia-lummis-proposes-bill-digital-091942173.html)

[2] Moomoo, [url](https://www.moomoo.com/hans/news/post/56127165/cynthia-lummis-proposes-bill-to-include-digital-assets-like-bitcoin)