The United States takes a crypto turn: This bill would allow you to finance your home with Bitcoin and Ethereum.

A new bill in the United States seeks to allow the use of cryptocurrencies like Bitcoin and Ethereum as mortgage collateral. Could digital assets help you buy a home without selling them first?

Imagining buying a home without selling digital assets is something that, for many, seems like a financial utopia. However, in the United States, that possibility could become a reality if Congress approves the “21st Century Mortgage Act”, a bill introduced by Senator Cynthia Lummis to revolutionize the real estate market with crypto. 

This bill seeks Recognize Bitcoin, Ethereum, and other cryptocurrencies as valid assets for applying for mortgages, allowing citizens to use them directly as collateral without having to convert them to dollars.

The initiative represents a concrete adaptation of the financial system to the new dynamics of wealth accumulation. Lummis said in X that she felt “Proud to introduce the 21st Century Mortgage Act to make homeownership more accessible for young Americans embracing the digital age.” Their position reflects a clear intention to connect the needs of new generations with traditional mortgage lending structures.

Towards modernizing the mortgage system with cryptocurrencies

The American mortgage system, built around the dollar and traditional assets, has proven inflexible in the face of technological change. However, today, younger generations, especially those under 35, whose homeownership rate barely exceeds 36%, They manage a good part of their assets through cryptocurrencies and digital assetsTherefore, the bill Lummis has introduced seeks to respond to this reality by integrating digital assets into official mortgage evaluation criteria.

Lummis also published a release on this new bill, providing greater clarity on its purpose and approach. In it, he emphasized that one of the key measures of the 21st Century Mortgage Act is that lenders They will not be able to demand the conversion of crypto assets into fiat currency. to calculate the applicant's solvency. In other words, if someone owns 3 BTC or 20 ETH, these can be used as collateral without being liquidated, thus preserving their potential for appreciation over time. This logic breaks with traditional banking practice, which prioritizes immediate liquidity over digital property and excludes those who have opted for modern investment strategies.

Senator Lummis added that the introduction of this regulatory proposal aligns with, and would “codify,” the directive issued by Federal Housing Finance Agency Director William Pulte in late June, in which he directed Fannie Mae and Freddie Mac to consider cryptocurrencies like Bitcoin and Ethereum as legitimate assets when assessing credit risk for single-family mortgage loans.

The challenge of integrating cryptocurrencies into mortgages: innovation vs. stability

While Lummis's proposed bill opens an innovative door to cryptocurrency-backed mortgages, some lawmakers have expressed legitimate concerns about the risks involved. Democratic representatives have called for thorough analysis before making such significant structural changes. The main reason is the volatility inherent in cryptocurrencies, which could jeopardize the fulfillment of mortgage obligations, especially in difficult economic times, which in turn could generate tensions in the real estate market.

To address these challenges, the legislative proposal includes the creation of rigorous frameworks for assessing risks, in addition to strengthening oversight by financial institutions. These entities will have to adapt to an increasingly complex and dynamic digital environment. 

Lummis sums up this vision clearly: “We live in a digital age, and rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward-thinking generation.”

His words not only reflect the essence of the project, but also illustrate the delicate tension between the desire to foster innovation and the need to ensure financial stability. Adapting the regulatory framework is a fundamental part of the challenge, and other legislative initiatives already exist that seek to integrate digital assets into the US financial system, paving the way for a hybrid future where traditional and digital assets coexist and complement each other.

The United States joins an international trend

The possibility of using cryptocurrencies as mortgage collateral has already found precedents outside the United States. In Australia, for example, a court ruling opened the door for Bitcoin to be used as collateral in home loans, charting a legal path that other countries are closely watching. This international context suggests that Lummis's proposal is not only viable, but also part of a broader financial transformation.

The legal recognition of digital assets in long-term transactions, such as a mortgage, redefines the concept of wealth and the relationship between technology and property. Although the United States is still in the legislative phase, the 21st Century Mortgage Act places the country at the forefront of the debate on how to adapt its financial mechanisms to a new reality.

Towards more accessible ownership in the digital age

One of the central elements of this regulatory proposal is the democratization of access to housing. Instead of relying exclusively on cash savings, it opens a path for millions of citizens who have chosen to invest in cryptocurrencies to use that wealth to move toward real estate ownership. 

Lummis clearly emphasized that the American dream of homeownership is not a reality for many young people and that her bill takes an innovative path toward wealth creation by taking into account the growing number of young Americans who own digital assets.

Thus, the senator puts forward an argument that is already resonating in various congressional committees: adapting mortgage lending to contemporary forms of wealth is a necessity, not a concession. This vision intertwines with other legislative efforts, such as the GENIUS Act and the CLARITY Act, which seek to regulate the use of digital assets, from exchanges to tokens, stablecoins, and emerging financial tools.

In conclusion, the introduction of the 21st Century Mortgage Act marks a turning point in the debate over property and financing in the United States. If cryptocurrencies are formally incorporated as valid assets in the mortgage system, it will not only open a new door for millions of citizens, but the financial architecture will be redefined in a more inclusive and digital direction.

This new bill still needs to overcome regulatory challenges, political resistance, and a thorough technical review. But its very existence demonstrates that the US financial system is being driven to evolve toward digital innovations.