Bitcoin News Today: Mortgage Bill Seeks Bitcoin Integration in Lending Practices

Despite a tumultuous week for cryptocurrency in Washington, a new mortgage bill introduced by Representative Nancy Mace of South Carolina signals a significant step toward integrating Bitcoin into traditional lending practices. The bill, H.R. 4374, proposed on 14th July 2025, aims to modernize mortgage evaluations by updating federal underwriting systems to include crypto assets held in brokerage accounts linked to exchanges.

If passed, lenders would be required to consider these digital assets when reviewing mortgage applications, potentially allowing borrowers to count Bitcoin and other digital assets held in registered brokerage accounts toward loan qualifications. Currently, applicants must convert their crypto into fiat currency and hold it for a set period before it is considered. This legislation seeks to remove that requirement, enabling digital assets to directly meet reserve and repayment criteria without liquidation.

The proposal builds on momentum from FHFA Director Bill Pulte’s June 2025 announcement to include crypto in mortgage evaluations. Notably, ARK Invest’s Cathie Wood praised the move, stating it could boost Bitcoin’s role in mainstream finance and help younger, crypto-savvy buyers qualify for home loans. The bill has been referred to the House Financial Services and Veterans Affairs Committees for review, marking a significant step toward legitimizing Bitcoin in traditional lending.

Additionally, the bill proposes changes for the Department of Veterans Affairs, potentially enabling veterans to count their digital assets when applying for VA-backed mortgages. While the proposed mortgage bill still awaits debate and approval in both the House and Senate, requiring the President’s signature to become law, the U.S. remains in a state of flux over Bitcoin legislation. Meanwhile, other nations are moving quickly to embrace cryptocurrency, with Pakistan and El Salvador forming a historic partnership centered on Bitcoin. Their agreement aims to explore crypto’s use in public sector utilities and expand their BTC reserves, underscoring a growing global divide in the approach to cryptocurrency.