Bitcoin News Today: Senator Lummis Introduces 21st Century Mortgage Act to Integrate Crypto into Mortgage Eligibility

Senator Cynthia Lummis (R-WY) has introduced the 21st Century Mortgage Act, a legislative proposal to integrate cryptocurrency into federal mortgage underwriting standards. The bill mandates that Fannie Mae and Freddie Mac evaluate digital assets—such as Bitcoin—held on U.S.-regulated exchanges when assessing borrower eligibility for single-family home loans, without requiring conversion to U.S. dollars [1]. This aligns with a July 28 directive from Federal Housing Finance Agency (FHFA) Director William Pulte, who instructed the agencies to explore incorporating crypto as reserve assets in mortgage risk assessments [2].

The legislation reflects a broader push to modernize housing finance for younger Americans, a demographic with low home ownership rates but significant crypto holdings. U.S. Census Bureau data shows only 36.6% of Americans under 35 owned homes in early 2025, the lowest since 1982 [3]. Meanwhile, a 2025 report indicates 21% of U.S. adults own cryptocurrency, with two-thirds under 45 [4]. Lummis emphasized the need to recognize "digital tools" as part of modern wealth-building strategies, arguing that federal policy should adapt to the financial realities of a "forward-thinking generation" [5].

Critics, including Senate Democrats, have raised concerns about crypto’s volatility and liquidity risks. A July 28 letter from Democratic senators to the FHFA requested detailed risk assessments, citing potential conflicts of interest given Pulte’s role as chairman of both Fannie Mae and Freddie Mac boards [6]. Analysts highlight challenges in valuing crypto assets for long-term loans, as their rapid price fluctuations complicate stable collateralization [7]. Regulatory frameworks for verifying and auditing crypto holdings remain unclear, raising questions about misuse prevention [8].

The bill’s scope extends beyond mortgages, signaling broader political interest in crypto integration. While focused on housing finance, the initiative aligns with discussions on expanding crypto’s role in retirement accounts and other financial instruments [9]. However, its timing overlaps with debates over central bank digital currency (CBDC) regulation, revealing divergent visions for digital money’s future [10].

Proponents argue the measure promotes financial inclusion by recognizing non-traditional assets, while critics warn it could incentivize speculative behavior or exacerbate market concentration risks [11]. The legislation remains in its introductory phase, with no immediate clarity on Senate proceedings or amendments. Its success will depend on bipartisan support and addressing technical hurdles, such as valuation methodologies and compliance safeguards [12].

Sources:

[1] CoinGape, [https://coingape.com/senator-cynthia-lummis-introduces-mortgage-act-to-recognize-bitcoin-in-loan-eligibility/](https://coingape.com/senator-cynthia-lummis-introduces-mortgage-act-to-recognize-bitcoin-in-loan-eligibility/)

[2] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-senator-lummis-proposes-21st-century-mortgage-act-recognize-bitcoin-digital-assets-loan-eligibility-2507/](https://www.ainvest.com/news/bitcoin-news-today-senator-lummis-proposes-21st-century-mortgage-act-recognize-bitcoin-digital-assets-loan-eligibility-2507/)

[3] U.S. Census Bureau

[4] 2025 State of the Crypto Holders Report

[5] Bitcoinworld, [https://bitcoinworld.co.in/crypto-mortgages-lummis-bill/](https://bitcoinworld.co.in/crypto-mortgages-lummis-bill/)

[6] CoinDesk, [https://www.coindesk.com/news-analysis/2025/07/28/trump-eyes-moving-u-s-economy-further-into-crypto-via-mortgages-401-k-s](https://www.coindesk.com/news-analysis/2025/07/28/trump-eyes-moving-u-s-economy-further-into-crypto-via-mortgages-401-k-s)

[7] Binance, [https://www.binance.com/en-IN/square/post/27603266118082](https://www.binance.com/en-IN/square/post/27603266118082)

[8] Techi, [https://www.techi.com/trump-crypto-retirement-mortgage-policy/](https://www.techi.com/trump-crypto-retirement-mortgage-policy/)

[9] CoinCentral, [https://coincentral.com/trump-administration-plans-crypto-integration-into-401ks-and-mortgages/](https://coincentral.com/trump-administration-plans-crypto-integration-into-401ks-and-mortgages/)

[10] Binance, [https://www.binance.com/en/square/post/07-28-2025-u-s-house-advances-anti-cbdc-bill-amid-crypto-legislation-push-27569775044377](https://www.binance.com/en/square/post/07-28-2025-u-s-house-advances-anti-cbdc-bill-amid-crypto-legislation-push-27569775044377)

[11] X (MartyParty), [https://x.com/martypartymusic/status/195022147****447293](https://x.com/martypartymusic/status/195022147****447293)

[12] CryptoRank, [https://cryptorank.io/news/feed/f983c-us-senators-mortgage-bill-recognizes-crypto-in-loan-eligibility](https://cryptorank.io/news/feed/f983c-us-senators-mortgage-bill-recognizes-crypto-in-loan-eligibility)