U.S. Senator Cynthia Lummis has once again stirred the pot in the financial world. On July 29, 2025, she introduced the ‘21st Century Mortgage Act,’ a groundbreaking bill designed to usher cryptocurrencies into the mainstream mortgage market. This legislative endeavor aims to allow Americans to leverage their digital assets as collateral when applying for home loans, marking a significant milestone in the integration of crypto into everyday finance.
Crypto Meets Real Estate: A New Frontier
Senator Lummis, known for her bullish stance on digital currencies, isn’t just throwing caution to the wind. This bill seeks to legitimize crypto as a viable financial tool, potentially reshaping how we think about mortgages. “Digital assets are here to stay,” Lummis stated in a press release. “It’s time we recognize their value in the real estate market.” For crypto enthusiasts, this could spell a new era where Bitcoin, Ethereum, and their digital brethren aren’t just speculative investments but tangible financial assets. As explored in our recent coverage of the new Lummis bill, this move could significantly impact the justification of crypto assets in U.S. mortgages.
The bill has sparked lively debates across the financial spectrum. Some analysts argue it represents a natural progression in crypto’s evolution. “This could be the catalyst to bring crypto fully into the fold of traditional finance,” muses John Kessler, a financial analyst at CryptoFinance. Others, however, raise concerns about volatility and regulatory hurdles. After all, the crypto market is notorious for its rollercoaster fluctuations—just ask anyone who’s traded Dogecoin.
A Mixed Bag of Reactions
The announcement has sent ripples through both the real estate and crypto markets. Predictably, reactions range from enthusiastic support to cautious skepticism. “It’s an innovative approach, no doubt,” says Laura Chen, a mortgage broker based in San Francisco, “but the practicality is still up in the air. How do we assess the value of collateral that can swing wildly in a matter of days?”
The proposed legislation includes measures to address these concerns, such as requirements for over-collateralization to safeguard lenders from crypto’s inherent volatility. Yet, the question remains: Will this be enough to convince traditional banks to embrace digital assets? For a deeper dive into the regulatory implications, see our coverage of the House’s upcoming crypto market structure vote.
Meanwhile, crypto platforms have been quick to respond. Lido and EigenLayer, two prominent DeFi platforms, have already expressed interest in facilitating these crypto-backed mortgages, hinting at the potential for new partnerships and growth in the decentralized finance sector.
Historical Context and Future Implications
This isn’t the first time Lummis has championed crypto causes. Her previous initiatives have sought to clarify regulatory frameworks and promote innovation within the digital currency space. In fact, her ongoing efforts have earned her the moniker of ‘Crypto Queen’ in some circles.
So, what’s next for this bold legislative move? If passed, the bill could pave the way for other countries to follow suit, potentially establishing a new standard in global finance. It raises the question of whether traditional financial institutions will adapt or resist this crypto-incursion into their territory.
As we stand on the brink of what could be a financial revolution, the ‘21st Century Mortgage Act’ serves as a reminder of just how far crypto has come—and how far it still has to go. Will this be the dawn of a new crypto-mortgage era, or just another chapter in the ongoing saga of digital disruption? Stay tuned. The financial world is watching.
Source
This article is based on: Get Mortgage with Crypto? Sen. Lummis Reveals New Bill & Hypes Best Cryptos
Further Reading
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- PayPal to Enable Businesses to Accept Bitcoin, Ethereum and Other Cryptocurrencies
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
