Sen. Lummis Drops Game-Changer: Crypto-Powered Home Loans Now on the Table

Brace for disruption—Wyoming's crypto queen just fired the starting gun on blockchain mortgages.

No more banks? No problem

Lummis' radical bill would let borrowers collateralize DeFi positions, stake yields, or even ape NFT portfolios to secure housing debt. Finally—a use case for your bored ape that doesn't involve Twitter flexing.

The fine print (with generational warfare)

Millennial homebuyers could theoretically bypass FICO scores by proving ETH staking history. Boomer loan officers reportedly clutching pearls at 1200% LTV ratios against volatile assets.

The kicker

Wall Street's already drafting opposition papers—nothing unites bankers faster than seeing their 3% mortgage origination fees get automated by smart contracts.

Federal Housing Agency Directive Spurs Legislative Action

The bill comes after an order was given last month by William Pulte, Director of the U.S. Federal Housing Finance Agency (FHFA), who ordered Fannie Mae and Freddie Mac to create a plan for including crypto in their risk assessments for home loans.

The two agencies were initially created by Congress to keep the mortgage market stable by buying home loans from lenders. They play a huge role in helping people get access to financing.

These two companies were created by the government to help make sure the housing market is strong and steady. They buy home loans from banks, which helps more people get approved. Lummis’ bill is expected to turn Pulte’s idea into a real law.

Lawmakers Split Over Crypto’s Role in Housing Finance

However, not everyone is on board with the plan. Some lawmakers, like Senators Elizabeth Warren,  Bernie Sanders, and other Democrats, warned that crypto is too unstable to be used in this way.

In a letter to Pulte last week. They explained that “Expanding underwriting criteria to include the consideration of unconverted cryptocurrency assets could pose risks to the stability of the housing market and the financial system.”

In short, they fear that linking crypto with home lending could expose the housing market to the same risk seen in the digital assets market, which is often volatile.

Why This Could Matter to Young People

U.S. Census Bureau data shows only 36.6% of Americans under 35 owned homes in early 2025, the lowest rate since 1982. Simultaneously, 21% of U.S. adults now own cryptocurrency, with the majority of ownership concentrated among Americans under 45, according to 2025 adoption surveys.

The demographic overlap between declining homeownership and rising crypto adoption among young Americans provides the policy foundation for Lummis’s legislative approach. Traditional mortgage underwriting may not adequately capture the wealth profiles of crypto-native younger generations.

The legislation WOULD prevent lenders from requiring cryptocurrency conversion to dollars for mortgage qualification purposes, allowing digital asset values to count directly toward borrower financial profiles. This approach addresses concerns about forcing asset liquidation during potentially unfavorable market conditions.

Housing policy experts note the bill raises questions about volatility management and asset valuation standardization that would require detailed regulatory guidance for implementation across the mortgage industry.

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