Sen. Lummis Proposes Crypto for Mortgage Risk Assessment

Sen. Lummis Proposes Crypto for Mortgage Risk Assessment

Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, which directs Fannie Mae and Freddie Mac to include cryptocurrency holdings in mortgage risk assessments. This includes Bitcoin and other digital assets without converting them to U.S. dollars.

Senator Cynthia Lummis introduced legislation on February 17, 2026, in Washington, D.C., for Fannie Mae and Freddie Mac to include cryptocurrency in mortgage risk assessments.

Senator Lummis’s bill suggests significant changes, aiming to incorporate cryptocurrency holdings in assessing mortgage risks, potentially influencing the housing market. Immediate reactions from markets or regulatory bodies are yet to be seen.

The proposed 21st Century Mortgage Act aims to allow cryptocurrency like Bitcoin in Fannie Mae and Freddie Mac’s mortgage evaluations. Senator Cynthia Lummis, a known crypto proponent, champions this bill to modernize financial assessments.

Senator Lummis, keen on supporting digital asset adoption, sees this move as a step toward updated financial systems. Fannie Mae and Freddie Mac must now re-evaluate their risk protocols, potentially incorporating cryptocurrencies without conversion into U.S. dollars.

This legislation embraces an innovative path to wealth-building, keeping in mind the growing number of young Americans who possess digital assets.

— Cynthia Lummis, U.S. Senator

This legislation could influence asset management strategies, impacting financial markets and inviting new assessments of digital currencies. Bitcoin and other recognized cryptocurrencies are expected to be at the forefront of these changes.

The bill faces skepticism from Senate Democrats, cautious about crypto volatility. They argue this move could increase borrower risk, highlighting the need for balanced evaluation. Financial implications remain contingent on successful legislative passage.

For broader financial implications, successful passage might set precedents for other sectors to consider digital assets, influencing future policy directions. The focus on Bitcoin and major stablecoins illustrates a strategic approach to expand asset classifications.

While potential changes could redefine asset reserves, much depends on future discussions. Historical data suggests mixed outcomes where crypto integration is concerned, mandating a careful approach to such policy implementations.