US Senator Lummis Proposes Bill to Let Crypto Qualify for Home Loans.

Under current practice, mortgage providers seldom count digital assets when assessing borrower eligibility. The new bill mandates that Fannie Mae and Freddie Mac, government‑sponsored enterprises critical to U.S. home‑loan liquidity, must treat assets recorded on cryptographically secured distributed ledgers as part of borrower reserves when underwriting mortgages. It also prohibits lenders from requiring conversion of crypto to U.S. dollars just to count them in risk assessments.

Specifically, the legislation would require Fannie Mae and Freddie Mac to revise their risk assessment models to include crypto holdings, prevent forced conversion of crypto assets at the mortgage application stage, and influence private mortgage lenders, who are expected to follow suit if the bill becomes law.

The legislation builds directly on a directive issued in June 2025 by Federal Housing Finance Agency (FHFA) Director William Pulte, who ordered both Fannie and Freddie to draft plans for including crypto in their mortgage risk frameworks.

Senator Lummis cited two key motivations: a growing demographic of younger Americans building wealth in digital assets, many of whom are under age 45, and a struggle for homeownership among these individuals under current mortgage underwriting rules. In a prepared statement, Lummis said: “This legislation embraces an innovative path to wealth‑building, keeping in mind the growing number of young Americans who possess digital assets. We’re living in a digital age, and rather than punishing innovation, government agencies must evolve.”

While hailed by the crypto community and some policymakers as a breakthrough, the proposal has sparked critical feedback, especially from Democratic lawmakers including Sen. Elizabeth Warren. Opponents argue crypto volatility makes it a risky basis for long‑term mortgage commitments. They also warn of heightened consumer protection issues and financial stability concerns.

In response, several Democrats sent a letter to FHFA Director Pulte raising doubts about the agency’s June initiative and cautioning against prematurely embedding crypto into the housing finance system.

This mortgage proposal is part of a broader push in 2025 to integrate crypto into mainstream financial regulation. In mid‑June, the Senate passed the GENIUS Act, the first major legislation regulating stablecoins, by a bipartisan vote of 68–30. The House followed in July, and President Trump signed the bill into law on July 18.

Senator Lummis continues to champion the Responsible Financial Innovation Act, targeted at clarifying definitions of digital assets and distinguishing commodities from securities under federal oversight. She also separately introduced a standalone crypto tax bill on July 3, 2025, proposing reforms such as exemptions for low‑value trades and deferring taxes on staking rewards until asset liquidation.

Reflecting on this momentum, Lummis said the U.S. appears to be “finally catching up” on digital‑asset policy after years of lagging behind international peers.

Volatility in crypto markets remains a central concern: prices can fluctuate widely, even within short spans of time, raising questions about how accurately digital asset valuations can support long‑term loans. Moreover, regulatory ambiguity persists. The financial system’s treatment of crypto continues to evolve rapidly, with oversight responsibilities still in flux among federal agencies like the SEC and CFTC. While stablecoin regulation has advanced via the GENIUS Act, broader market‑structure bills are still pending, and major questions remain on enforcement and consumer protections.

The bill now enters the Senate Banking Committee, where it will be weighed alongside ongoing debates around stablecoin and market‑structure legislation. If passed, it moves to the House, which may attach broader crypto regulations before sending it to the President’s desk. Critics on the left, including some Democratic senators, are expected to push back on expanding crypto’s role in public policy without stronger consumer protections. Supporters, meanwhile, argue digital asset holdings represent legitimate personal wealth and should be included in mortgage calculations just as stocks or cash savings are.