- Lummins said Americans under 35 are experiencing historically low homeownership rates
- The proposed bill aims to make property ownership easy for young crypto investors
- The bill is dubbed the “21st Century Mortgage Act”
Amid U.S.’ evolving crypto landscape, the regulators there are actively promoting ideas that would add a greater “utility element” to digital assets. In a fresh development, Senator Cynthia Lummins has extended a new bill, called the “21st Century Mortgage Act” on Tuesday, July 29. Under this, the senator has proposed to integrate digital assets with home loan provisions in the U.S.
Modernizing mortgages: The why and how of crypto-backed home loans
Introducing the bill, Lummins noted that Americans under the age of 35 are experiencing historically low home ownership rates, with only 36.6 percent possessing residential properties in Q1 2025 — a level not seen since 1982. She further noted that 21 percent of U.S. adults now own cryptocurrency, with 67 percent of crypto owners being under the age of 45.
“This legislation embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets,” the Senator noted.
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The bill pitches digital assets to be included as a part of the mortgage risk assessments parameters for single-family home loans. It seeks to reform home loan requirements for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
Additionally, the bill would prohibit a forceful conversion of crypto assets into dollars, “respecting the nature of digital wealth”.
In the next steps, this bill will be extended for review to the standing committees in the Senate after which followed by detailed discussions among lawmakers.
Will crypto-based home loans be the new normal?
While the U.S. seems to be on the first step of analysing the role of crypto integration with home mortgages, this category of integration between traditional financial products and digital assets is being explored in other parts of the world as well.
Last week, for instance, Australia’s crypto firm Block Earner started allowing individuals to borrow AUD upto five million for home loans by keeping Bitcoin as collateral.
In the U.S. as well, bill numbered H.R.4374 was recently introduced to the U.S. Congress aiming to have mortgage issuers consider crypto funds as a factor in evaluating the creditworthiness of loan applicants.
