To require government-sponsored enterprises to consider digital assets in a mortgage loan risk assessment.
Legislative Progress
IntroducedMs. Lummis introduced the following bill; which was read twice …
Summary
What This Bill Does
The 21st Century Mortgage Act of 2025 requires Fannie Mae and Freddie Mac to accept cryptocurrency holdings as proof of financial reserves when evaluating mortgage applications. Currently, borrowers must show cash or traditional assets to demonstrate they can cover emergencies; this bill would let them count qualifying digital assets like Bitcoin instead, without converting them to dollars.
Who Benefits and How
Cryptocurrency owners seeking mortgages would benefit significantly, as they could use their digital asset holdings to qualify for home loans without selling those assets (and potentially triggering taxable events). Cryptocurrency custodial services and regulated exchanges would also benefit from increased business, since the bill requires digital assets to be held through qualified custodial arrangements.
Who Bears the Burden and How
Fannie Mae and Freddie Mac must develop new methodologies for assessing digital asset values and volatility, implement new risk adjustment procedures, and submit these for board and regulatory approval. The Federal Housing Finance Agency takes on additional oversight responsibilities reviewing these new assessment methodologies. Taxpayers could face indirect risk exposure if mortgage defaults increase due to volatile cryptocurrency valuations.
Key Provisions
- Defines "digital asset" as any value recorded on a cryptographically-secured distributed ledger, explicitly excluding NFTs and tokens representing other assets
- Requires digital assets to be held in "qualified custodial arrangements" by regulated, U.S.-jurisdiction custodians
- Mandates GSEs apply risk adjustments for market volatility and concentration when counting digital assets as reserves
- Requires periodic review and updates of risk-adjustment methodologies
- Requires board approval plus FHFA review before implementing or revising digital asset assessment methods
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
This bill requires government-sponsored enterprises to consider digital assets in their mortgage loan risk assessments.
Policy Domains
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
custody of a digital asset by a regulated third-party or multi-party arrangement with enforceable governing agreement
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology