Amid a significant shift toward digital assets in the United States under President Donald Trump’s pro-crypto administration, US Senator Cynthia Lummis (R-WY) has introduced the 21st Century Mortgage Act, a new piece of legislation aimed at modernizing the country’s mortgage system with crypto.
Lummis’ 21st Century Mortgage Act seeks to require government-sponsored enterprises like Fannie Mae and Freddie Mac to consider digital assets when evaluating eligibility for single-family mortgages.
This initiative aligns with a directive from William Pulte, the Director of the US Federal Housing Finance Agency, who advocated for the inclusion of cryptocurrency as an asset in loan assessments.
In her statement, Senator Lummis emphasized the urgency of addressing the “homeownership crisis” facing younger generations:
The American dream of homeownership is not a reality for many young people. This legislation embraces an innovative path to wealth-building, keeping in mind the growing number of young Americans who possess digital assets.
Notably, the Senator asserted that this new bill would prevent the mandatory conversion of crypto assets into traditional currency, thus respecting the intrinsic value of digital wealth.
This crypto initiative comes at a time when young Americans are experiencing unprecedented troubles in homeownership. According to data from the US Census Bureau shared in Lummis address, homeownership rates for individuals under 35 have plummeted to just 36.6%, marking the lowest levels recorded since 1982.
As of this writing, Bitcoin (BTC), the market’s largest cryptocurrency, is trading at $117,800. This is down just over 4% from its record high of $123,000, which was reached on July 14.
Featured image from DALL-E, chart from TradingView.com
