The American senator Cynthia Lummis Officially, the Century Mortgage Act, a revolutionary legislation, which would require companies sponsored by the government that they consider cryptos when assessing eligibility for unifamilial mortgage loans.
In short
- The Lummis bill wants to include cryptos in real estate loans eligibility.
- Fannie Mae and Freddie Mac should develop standards to assess crypto portfolios.
- This initiative could open a world precedent and accelerate mainstream adoption.
This initiative marks a historic turning point in the integration of cryptocurrencies into the traditional American financial system, is part of an international trend already initiated in France where cryptoactives can serve as a guarantee for Lombard credits since April 2025.
A bill that targets the crypto generation
This new bill Lummis senator would allow crypto assets in the long term to count for mortgage eligibility, specifically targeting young native buyers of the crypto world. This approach recognizes a major demographic reality: an entire generation of Americans now has a significant part of their heritage in the form of cryptocurrencies.
Senator Lummis justifies this initiative by an alarming observation: “The American dream of home ownership is not a reality for many young people. »By allowing the inclusion of cryptocurrency In the eligibility criteria, this legislation Could unlock access to mortgage for mortgages for thousands of crypto investors hitherto penalized by a traditional financial system.
This proposal follows that of the representative Nancy Macethe two elected officials seeking to codify by law an order of June from the Federal Funding Agency for American Housing (FHFA). This bipartite convergence highlights the perceived urgency of adapting the American mortgage system to new heritage realities.
Fannie Mae and Freddie Mac in the crosshairs
The Lummis bill would put in the law an order of an American government agency for housing to assess the cryptocurrencies. Concretely, this would oblige the giants of mortgage refinancing Fannie MAE and Freddie Mac to develop standardized evaluation methods for crypto wallets.
This regulatory development is part of a broader movement of institutional recognition of digital assets. While the ETF Bitcoin and Ethereum are now accepted by the DRYthe integration of cryptos into mortgage criteria represents the next logical step of this institutionalization.
The impact could be considerable: Fannie MAE and Freddie Mac guarantee or hold around 60% of American real estate loans, giving a massive scope to any modification of their eligibility criteria.
The expansion tokenized real estate ecosystem
This legislative proposal comes as tokenized real estate experiences accelerated development. Platforms like Realt, which combines the advantages of real estate and cryptos to offer tokenized opportunities to investors, already demonstrate the viability of the intersection between blockchain and real estate.
Realt proposes to exploit the power of the DEFI to borrow or sell in a decentralized way, creating a parallel ecosystem where traditional real estate meets decentralized finance. Since 2019, Real has been selling Tokenized properties On Blockchain, allowing investors to buy property fractions at very affordable prices from $ 50.
This split approach prefigures the evolution that the traditional mortgage market could experience. If cryptoactives become acceptable as guarantees, we could attend the emergence of new hybrid models combining traditional loans and mechanisms Challenge.
Technical and regulatory implications
The implementation of this legislation raises considerable technical challenges. How to assess the volatility of a crypto portfolio? What discount mechanisms to apply according to assets? These questions will require complex regulatory developments.
The previous ones already exist in the private sector. Some European banks already accept Bitcoin as collateral for loans, establishing strict cover ratios and margin of appeal mechanisms. The adaptation of these models to the American mortgage market represents a major challenge.
Volatility remains the main obstacle. Unlike traditional assets, cryptocurrencies can lose 50 % of their value in a few weeks. Regulators will probably have to require very conservative coverage ratios, potentially limiting the attraction of the device.
Traditional financial sector reactions
The American banking industry Observe this evolution with a mixture of interest and apprehension. On the one hand, the integration of cryptos could open new customer segments and income sources. On the other, it considerably complex risk management.
Large banks like Jpmorgan Chase and Bank of Americawhich have already developed crypto services for their institutional customers, seem better positioned to adapt to this evolution. Smaller establishments could struggle to develop the necessary technical expertise.
This asymmetry could accelerate the consolidation of the American banking sector, crypto-compatible establishments gaining a competitive advantage over traditional actors.
A precedent for mainstream adoption
Beyond technical considerations, this initiative represents a major political signal. Cynthia Lummis, widely considered as the strongest ally of the Congress Crypto industry, uses its influence to normalize the use of cryptocurrencies in the real economy.
This pragmatic approach contrasts with the ideological debates that have long characterized Crypto discussions in Washington. By focusing on a case of concrete use: home ownership, the senator avoids controversies while advancing the crypto agenda.
The timing is strategic. With l'Trump administration favorable to cryptos And a potentially more receptive congress, this legislation has a real chance of succeeding. Its success could catalyze other similar initiatives in other sectors.
Challenges and opportunities for the Crypto ecosystem
This development would create major opportunities for the American crypto ecosystem. Institutional Custody platforms, crypto valuation services, and consultants specializing in the evaluation of digital assets would see their market explode.
Actors like Realt, who have raised $ 5 million to develop their real estate tokenization platform and already combine real estate and decentralized finance, could benefit from a considerable training effect.
However, this integration also requires new responsibilities. Crypto industry will have to develop transparency and reporting standards compatible with regulatory banking requirements. A necessary professionalization, but potentially expensive.
International development prospects and impacts
The success of this American initiative could influence other jurisdictions. The European Union, with Mica, and the United Kingdom carefully observe the American regulatory evolution. A successful adoption in the United States would legitimize the approach for other markets.
The impact on cryptocurrency prices could be substantial. The opening of a new case of major use: mortgage guarantees would create an additional structural demand, particularly for the most established assets as Bitcoin and Ethereum.
This development is part of a broader trend in “financialization” of cryptocurrencies, which gradually go from the status of speculative assets to that of mainstream financial instruments. An inevitable process, but which fundamentally transforms the nature of this ecosystem.
This article does not constitute financial advice. Cryptocurrencies are volatile and risky assets. It is essential to do your own research before any investment. Regulatory evolution remains uncertain.
The bill does not yet specify what assets would be eligible, but Bitcoin and Ethereum seem the most likely candidates given their regulatory recognition.
Important discount mechanisms and margin calls would probably be necessary, similar to the current practices of private crypto lenders.
The legislative process can take several months, even years, but the current political environment seems favorable to its adoption.
Indirectly yes, by legitimizing the intersection between crypto and real estate, this law could accelerate the adoption of real estate tokenization platforms.
No, it would only concern loans guaranteed by Fannie Mae and Freddie Mac, or around 60 % of the American mortgage market.
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