Rep. Nancy Mace of South Carolina has reintroduced the American Homeowner Crypto Modernization Act of 2025, a bill drafted to bring outdated federal mortgage rules in line with today’s digital economy. Led by President Trump’s crypto agenda, this legislation eliminates outdated restrictions and paves the way for a broader adoption of digital assets across the nation’s financial system.
“Owning cryptocurrency shouldn’t disqualify someone from the American dream of homeownership,” said Rep. Mace. “Federal mortgage guidelines are stuck in the past. Our bill brings them into the 21st century and supports President Trump’s vision for a smarter, fairer government which reflects how Americans live and invest today.”
The American Homeowner Crypto Modernization Act of 2025 requires the U.S. Department of Housing & Urban Development (HUD), Department of Agriculture (USDA), Department of Veterans Affairs (VA), and the Federal Housing Finance Agency (FHFA) to update their mortgage underwriting guidelines, systems, and standards. These changes would ensure assets held in brokerage accounts linked to cryptocurrency exchanges are considered when evaluating mortgage applications.
The bill gives federal agencies 24 months to implement the necessary updates.
According to U.S. Census Bureau data, homeownership for Americans under 35 stood at 36.6% in Q1 of 2025, reaching historically low levels since the Housing Vacancy Survey began tracking homeownership by age in 1982. This same 35 and under demographic has embraced digital assets as their primary wealth-building strategy.
The 2025 State of the Crypto Holders Report from the National Cryptocurrency Association (NCA) reveals that 21% of U.S. adults now own cryptocurrency, with 67% of crypto owners under age 45.
A Governmental Thumbs Up
In late June, Bill Pulte, Director of the FHFA, announced that the agency will investigate how cryptocurrency holdings affect mortgage eligibility. Pulte’s remark corresponds with the U.S.’ growing embrace of cryptocurrency under President Trump. For cryptocurrency assets to be taken into consideration, Fannie Mae and Freddie Mac now stipulate that they must be “exchanged into U.S. dollars, and held in a U.S. or state regulated financial institution.”
Under Rep. Mace’s legislation, lenders participating in federal mortgage programs must factor in a borrower’s verified crypto holdings, not just their traditional bank assets, when assessing creditworthiness. This could help millions of Americans, particularly younger and tech-savvy investors, qualify for mortgages which currently overlook their full financial picture.
The American Homeowner Crypto Modernization Act of 2025 is part of a broader effort to align housing policy with the Trump administration’s push for fairer, innovation-driven financial access. It supports the administration’s work to modernize regulatory frameworks around digital assets and end outdated barriers which penalize responsible crypto investors.
Questioning Crypto
However, the crypto for mortgage plan has been put under the microscope by many, as U.S. Sens. Jeff Merkley and Elizabeth Warren, Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Chris Van Hollen, Mazie Hirono, and Bernie Sanders sent a letter to Pulte in late July raising concerns about utilizing cryptocurrency assets in the underwriting process.
The move to cryptocurrency, as voiced by the senators, could introduce unnecessary risks to consumers and pose serious safety and soundness concerns for the U.S. housing and financial markets.
“Under current policy, neither the Enterprises, nor any other channel for federally-backed, insured, or guaranteed mortgages, permit mortgage lenders to consider cryptocurrency when determining whether they can afford a mortgage, unless that cryptocurrency has been converted to U.S. dollars and is accompanied by appropriate documentation,” wrote the Senators in the letter. “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.”
For cryptocurrency assets to be taken into consideration, Fannie Mae and Freddie Mac now stipulate that they must be “exchanged into U.S. dollars and is held in a U.S. or state regulated financial institution.”
“To the extent that historical volatility and liquidity persists even as the market matures, a borrower using crypto faces an increased risk that they may not be able to exit a crypto position and convert to cash at a price that would allow them to buffer against risk of mortgage default,” added the Senators in their letter. “Crypto is also subject to heightened risks of loss due to scams, cyber hacks, or physical theft, which could leave homeowners vulnerable to losing their crypto assets with little hope of recovery.”
Furthering the Digital Push
In addition to Rep. Mace’s measure, Sen. Cynthia Lummis has introduced the 21st Century Mortgage Act, another bill drafted to bring America’s mortgage system into the digital age by requiring the GSEs to consider digital assets when assessing single-family mortgage eligibility. The 21st Century Mortgage Act would direct Fannie Mae and Freddie Mac to include digital assets recorded on a cryptographically secured distributed ledger as part of their mortgage risk assessments for single-family home loans. This bill would prohibit forcing the conversion of these assets into dollars, respecting the nature of digital wealth.
“The American dream of homeownership is not a reality for many young people,” added Sen. Lummis. “This legislation embraces an innovative path to wealth-building keeping in mind the growing number of young Americans who possess digital assets. We’re living in a digital age, and rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward-thinking generation.”
Click here for more on Rep. Mace’s American Homeowner Crypto Modernization Act of 2025.
