Wyoming Senators push bills to allow crypto mortgages

• Senator Lumis introduced a bill that would include code in mortgage approvals.
• The bill targets younger buyers and aligns with FHFA’s recent crypto directive.
• Critics cite Crypto’s volatility as the default risk for mortgages.

Wyoming Sen. Cynthia Ramis proposed a law that if passed, it would require housing finance institutions to consider digital assets when evaluating mortgage applications.

The bill sparked debate on Capitol Hill, and supporters see it as a step towards critics warning of financial modernization and potential risks.

The bill is linked to the recent federal housing directive

The proposed law, known as the 21st Century Mortgage Act, is intended to codify recent orders issued by the Federal Housing Financial Institutions (FHFA).

The order directed two major US mortgage buyers, Fannie Mae and Freddie Mac, to take cryptocurrency into consideration as part of their single-family mortgage asset valuation.

Senator Lumis issued the bill shortly after the FHFA directive, saying Congressional action is necessary to ensure the order becomes permanent.

According to the senator, the bill reflects a modern approach to wealth building, especially for young Americans who are more likely to own digital assets than traditional wealth or savings.

Targeting younger generations of buyers

Citing data from the US Census Bureau, Ramis noted that homeownership for Americans under the age of 35 stood at just 36% in the first quarter of 2025.

For many of this demographic, crypto represents a significant portion of net worth.

Therefore, the bill seeks to address the growing need to consider not only fiat and traditional assets, but also all forms of personal wealth during the mortgage approval process.

The bill allows borrowers to retain their cryptocurrency holdings without being forced to liquidate them in US dollars for mortgage considerations.

This approach corresponds to how wealth is evolving, and acknowledges the economic realities of modern youth, Ramis argues.

Pushback from democratic lawmakers

Despite the potential to expand financial inclusion, the bill faces early resistance.

Several Senate Democrats have expressed concern over the FHFA order and, in turn, proposed law.

In a letter sent to FHFA Director William Pulte on July 24th, they urged the institution to fully assess the risks and benefits of integrating cryptography into mortgage assessments.

According to the letter, borrowers who rely on volatile digital assets may have a hard time converting their holdings into cash during recessions.

This could increase the risk of defaulting your mortgage. This affects not only individual borrowers, but also the broader financial system.

Wider cryptography on the horizon

The 21st century mortgage law is just one of several crypto-related bills that will pass through Congress.

Senator Ramis is leading another effort to establish a comprehensive framework for the digital asset market.

Meanwhile, the Senate is reviewing another bill that bans the Federal Reserve from launching central bank digital currency (CBDC) after receiving approval from the House earlier this month.

A similar bill has already been introduced by Representative Nancy Mace on the House side.

The MACE bill, known as the Crypto Modernization Act, requires mortgage lenders to consider the value of digital assets held in securities trading accounts related to crypto exchanges during the credit valuation process.