Cynthia Lummis Pushes Bill to Allow Crypto for U.S. Mortgages

U.S. Senator Cynthia Lummis, widely regarded as the crypto industry’s strongest ally in Congress, has introduced new legislation that would allow mortgage borrowers to use cryptocurrency holdings to secure home loans. The proposal would enable digital assets held in qualified custodial accounts to count toward a borrower’s reserves without requiring conversion to U.S. dollars.

The bill aligns with efforts by Federal Housing Finance Agency Director William Pulte, who recently directed government-backed lenders Fannie Mae and Freddie Mac to explore frameworks for incorporating crypto into mortgage underwriting. Lummis described the move as a step toward wealth-building for younger Americans increasingly holding digital assets, emphasizing the need for government policy to adapt to a “modern, forward-thinking generation.”

Lummis, chair of the Senate Banking Committee’s digital assets subcommittee, is also leading broader efforts to establish a comprehensive U.S. regulatory framework for cryptocurrencies. However, the proposal faces resistance from key lawmakers, including Senator Elizabeth Warren and other Democrats, who warn that using volatile digital assets in mortgages could pose risks to financial stability and the housing market.

The debate reflects a growing divide in Washington over integrating cryptocurrencies into mainstream finance. Supporters argue it could expand homeownership opportunities and modernize outdated lending standards, while critics cite market volatility and systemic risk. It remains unclear whether Lummis’ bill will gain traction in Congress or be incorporated into other ongoing legislative efforts.

If passed, this measure could mark a significant milestone in legitimizing crypto within traditional financial systems, potentially reshaping how Americans leverage digital assets for major life purchases such as housing.