Senator Cynthia Lummis Introduces Mortgage Act To Recognize Bitcoin In Loan Eligibility

US Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, designed to recognize Bitcoin and cryptocurrencies in loan eligibility processes. A similar bill is snaking its way through the legislative process in the US House of Representatives, with key sector players keeping a keen eye on proceedings.

Mortgage Act To Include Cryptocurrencies In Loan Processes

Cynthia Lummis has inched forward in her plans to revolutionize the federal housing policies with the introduction of a new bill. Dubbed the 21st Century Mortgage Act, the bill is an attempt to usher the US mortgage system into the digital age, integrating cryptocurrencies in the sector.

If passed into law, the bill will require government-sponsored enterprises to consider digital assets like Bitcoin in the assessment of single-family mortgage eligibility. The bill will codify the FHFA Director William Pulte’s directive for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to include digital assets in loan considerations.

“We’re living in a digital age, and rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward-thinking generation,” said Senator Cynthia Lummis.

Furthermore, the Mortgage Act will ban the “forced conversion” of Bitcoin and other cryptocurrencies to fiat by home loan applicants. Meanwhile, a similar bill was introduced in the House of Representatives for Bitcoin holdings in mortgages.

Proud to introduce the 21st Century Mortgage Act to make homeownership more accessible for young Americans who are embracing the digital age. More below. ⬇️ pic.twitter.com/He5ijtam4A

— Senator Cynthia Lummis (@SenLummis) July 29, 2025

Plans for the consideration of Bitcoin in mortgages have gathered significant steam in recent months. Cathie Wood said the FHFA’s Bitcoin-mortgage rule will trigger a surge for the largest cryptocurrency, with Michael Saylor lending his voice to the push.

Amid Senator Cynthia Lummis’s Mortgage Act introduction, Bitcoin is trading at $118,000 while trading volumes are up 8% over the last day. Other cryptocurrencies are ranging, with the biggest gainer following the report being XRP with its near-3% spike. At press time, the global cryptocurrency market capitalization is at $3.85 trillion, a 0.50% decline over the last day.