As the landscape of finance rapidly evolves, the integration of digital assets into traditional systems is becoming increasingly relevant. Notably, US Senator Cynthia Lummis (R-WY) has taken a significant step by introducing the 21st Century Mortgage Act, aimed at updating the mortgage process by incorporating cryptocurrency and enhancing accessibility for a younger demographic.
This legislative push comes amidst a larger wave of support for cryptocurrency; several major bills have recently advanced in Congress, including the GENIUS Act, which has now become law. This momentum reflects a growing openness to adopting digital currencies within the conventional financial infrastructure.
Recognizing Digital Assets in Mortgage Applications
The goal of the 21st Century Mortgage Act is to mandate government-sponsored bodies like Fannie Mae and Freddie Mac to consider cryptocurrencies and other digital assets when evaluating mortgage applications. This approach is a response to changing financial behaviors, particularly among younger Americans.
William Pulte, Director of the US Federal Housing Finance Agency, has voiced support for this initiative, advocating for the acknowledgment of cryptocurrencies during the mortgage assessment process. Senator Lummis’ announcement highlighted the importance of recognizing the financial realities faced by younger homebuyers who often utilize digital currencies to build wealth.
In her remarks, Lummis pointed out the necessity of tackling the growing homeownership crisis among the youth:
With many young people unable to achieve the American dream of owning a home, this bill presents a progressive approach to wealth-building, catering to those who increasingly own digital assets.
Lummis stressed that adapting to the needs of a modern generation is essential—government entities should encourage innovation rather than hinder it in the face of rapid technological growth.
Shifting Wealth Dynamics Among Young People
The proposed legislation emphasizes the need for mortgage assessments to include digital currencies, which are secured on decentralized ledgers. Lummis contended that such a measure would also eliminate the requirement to convert crypto into traditional currency, thus preserving its inherent value.
The impetus for this crypto initiative is particularly pronounced given the current struggles young Americans face in homeownership. Recent statistics from the US Census Bureau reveal that homeownership rates among individuals below 35 years old have dipped to a mere 36.6%, the lowest since 1982.
In light of these challenges, many young individuals have pivoted toward digital currencies as a viable means for accumulating wealth. According to a report from the 2025 State of the Crypto Holders, about 21% of American adults own cryptocurrency, with a notable 67% of these investors being under the age of 45.
Currently, Bitcoin (BTC), the leading cryptocurrency, is trading at approximately $117,800, which reflects a modest drop of over 4% from its peak of $123,000 achieved on July 14.
As digital assets continue to gain traction, the 21st Century Mortgage Act could serve as a pivotal change in how mortgages are assessed and granted, paving the way for greater financial inclusivity for younger generations.
