Senator Cynthia Lummis (R – Wyo.) Introduced the 21st -century mortgage law On July 29, legislation that aims to bring our insurance into the digital age by obliging Fannie Mae and Freddie Mac to consider digital assets when assessing single -family mortgage are eligible.
The bill specifies the companies sponsored by the government to recognize assets that are recorded on cryptographically secure ledgers and bars lenders to force borrowers to convert companies into dollars to be easily counted into risk models.
Lummis the measure framed In response to a slump of a homeowner among younger Americans and the reality that many now build up savings in Crypto.
She explained:
“Instead of punishing innovation, government agencies must evolve to meet the needs of a modern, progressive generation.”
In addition, the Senator noted that allotment data in the first quarter of 35 years aged 35 showed 36.6% and estimates that 21% of American adults have cryptocurrency, with two -thirds of the owners younger than 45.
Crypto is gaining strength
The legislation would codify a policy shift that is already underway at the Federal Housing Finance Agency (FHFA).
Director Bill Pulte has ordered Fannie and Freddie to treat cryptocurrency reserves as eligible assets in risk measurements with a single family loan and to draw up plans for recognizing that balance without first liquidating them.
He also announced one wider assessment From how digital assets companies, including Bitcoin, must take into account mortgage evaluations.
The FHFA supervises the housing financing system, including Fannie Mae, Freddie Mac, and the federal banks for housing loans, and its movements mark a break of practice in the past in which insurers usually accepted cash, effects and pension accounts, but excluding Crypto rules.
Recognition would not enable borrowers to repay mortgages in crypto, although it would make it possible to count verified digital asset balances in addition to traditional assets in capacity and risk tests.
The bill comes in the midst of a broader shift between supervisors to crypto policy under the current US administration.