New Lummis Bill Supports Use of Crypto Assets in U.S. Mortgage Applications.

Washington, D.C., July 29, 2025 — Senator Cynthia Lummis (R-WY), one of Congress’s most prominent advocates for digital asset innovation, has introduced new legislation aimed at formally supporting the inclusion of cryptocurrency holdings in U.S. mortgage underwriting standards. The bill aligns with ongoing federal efforts to modernize financial qualification criteria and integrate digital assets into mainstream economic systems.

The proposal comes just weeks after the Trump administration directed federal housing regulators to explore frameworks allowing verified crypto assets—held on regulated platforms—to be considered legitimate financial assets during mortgage evaluations.

Policy Overview

The bill, titled the Digital Asset Homeownership Equity Act, would amend the Federal Housing Enterprises Financial Safety and Soundness Act to require Fannie Mae and Freddie Mac to recognize digital assets as part of borrower asset disclosures. Specifically, it would authorize the Federal Housing Finance Agency (FHFA) to develop clear standards for valuing and verifying cryptocurrency holdings, subject to safeguards against volatility and fraud.

According to Senator Lummis, the measure is designed to “reflect 21st-century financial realities” and expand homeownership opportunities for millions of Americans who maintain substantial portions of their wealth in digital assets.

“We’re no longer in a world where all assets are held in checking accounts or brokerage firms,” Lummis said in a statement. “If Americans are responsibly managing their wealth through digital assets, our mortgage system should adapt accordingly.”

Supporting the Digital Economy

The bill is part of a broader push by Lummis and other crypto-forward lawmakers to modernize the U.S. financial infrastructure. In addition to promoting fairness in lending, the legislation aims to:

  • Encourage innovation in the mortgage and fintech sectors.

  • Provide regulatory clarity around the use of crypto in federally backed lending.

  • Set national standards for digital asset verification and valuation.

The bill also calls for the FHFA to work with the Treasury Department, the SEC, and the CFTC to ensure that crypto assets used in mortgage underwriting are subject to proper reporting, custody protections, and anti-money laundering compliance.

Industry Reaction

The proposal has been met with optimism across the digital asset industry. Proponents argue that integrating crypto into mortgage criteria could open homeownership to tech-savvy individuals and entrepreneurs who have historically struggled to meet traditional banking benchmarks, despite holding substantial wealth in digital forms.

Mortgage lenders and fintech platforms are watching closely, with some already exploring pilot programs that use stablecoins or tokenized assets as collateral under private lending standards.

Concerns and Oversight

Critics of the bill, primarily from consumer protection and banking oversight circles, warn that crypto’s price volatility could introduce new risks to the mortgage market. They argue that housing finance agencies must ensure strong valuation and risk management frameworks are in place before crypto assets can be considered reliable for long-term lending decisions.

Senator Elizabeth Warren and other skeptics have emphasized the importance of maintaining financial stability and protecting borrowers from predatory or untested lending practices tied to emerging asset classes.

Next Steps

The bill will be reviewed by the Senate Banking, Housing, and Urban Affairs Committee, where it is expected to generate bipartisan debate. With the White House already signaling support for broader crypto adoption across economic sectors, the legislation may gain traction alongside other digital asset reform initiatives, including the GENIUS Act and the CLARITY Act.

If passed, the Lummis bill would represent a major step toward legitimizing crypto assets in everyday financial life, beginning with one of the most critical milestones for American families: homeownership.

As the digital economy continues to grow, lawmakers are increasingly being challenged to adapt existing frameworks to reflect new forms of value—and Lummis’s proposal could set a national precedent for how cryptocurrency is treated within the American dream.