Michaela
Summary: What is the goal of the 21st Century Mortgage Act?
The bill aims to modernize the U.S. mortgage system by allowing borrowers to include digital assets on their balance sheets when applying for loans. It seeks to make homeownership more accessible for first-time buyers in the digital era. The legislation also directs Fannie Mae and Freddie Mac to consider these assets without requiring conversion into U.S. dollars.
Senator Cynthia Lummis has pressed forward with her 21st Century Mortgage Act, a proposal aimed at easing access for first-time homebuyers while updating mortgage regulations to account for digital asset ownership.
On August 24, Senator Lummis shared an interview clip on X in which she reaffirmed her commitment to formalizing into law Federal Housing Finance Agency Director William Pulte’s directive that Fannie Mae and Freddie Mac evaluate the role of digital assets in mortgage risk assessments.
“The vast majority of people who own digital assets are also first-time home buyers. And in this environment, buying a home is almost cost-prohibitive,” Senator Lummis stated.
Senator Lummis explained that the bill aims to allow borrowers to include digital assets on their balance sheets when applying for a mortgage, providing additional equity to demonstrate their qualification for a home loan.
On July 29, Senator Lummis unveiled the 21st Century Mortgage Act, a Senate bill designed to modernize the U.S. mortgage system. Senator Lummis stressed that government agencies must evolve to meet the needs of a “modern, forward-thinking generation” in today’s digital era.
The proposed legislation would require Fannie Mae and Freddie Mac to consider digital assets recorded on secure, cryptographically protected ledgers when assessing mortgage risk for single-family home loans, while prohibiting any requirement to convert these assets into U.S. dollars, preserving the value and integrity of digital wealth.
21st Century Mortgage Act: SHIB Holders’ New Opportunities
The 21st Century Mortgage Act could create a significant opportunity for SHIB holders by allowing them to count their digital tokens toward mortgage qualifications. By including SHIB in their balance sheets, holders could demonstrate additional equity, improving their chances of securing loans for single-family homes.
This provision effectively transforms digital assets from purely speculative investments into tangible financial tools, giving holders a pathway to leverage their crypto wealth for real-world applications.
Beyond home loans, the legislation signals a broader acceptance of cryptocurrencies within traditional finance, potentially encouraging lenders and other financial institutions to explore similar integrations.
By bridging the gap between decentralized assets and conventional markets, the bill could enhance SHIB’s utility and establish a precedent for other digital tokens to be recognized in formal financial assessments.
Read More
- Senator Lummis Calls for Crypto Tax Reform to Address Unfair Tax Rules
- Bitcoin Reserve Push: Sen. Lummis Calls for National Strategy and Tax Reforms at BTC 2025
- Sen. Cynthia Lummis Revives BITCOIN Act to Build US Crypto Reserve
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
