US Senator Cynthia Lummis has introduced the 21st Century Mortgage Act, which aims to codify an order from the Federal Housing Finance Agency allowing mortgage purchasers to consider digital assets, including cryptocurrencies, in loan applications. Lummis emphasized the need for this legislation to support young Americans who hold digital assets. This move comes amid a letter from several Senate Democrats urging the FHFA to assess the risks and benefits of incorporating cryptocurrency as collateral, highlighting concerns about its historical volatility. The proposed law seeks to alleviate the pressure on young buyers, particularly given that homeownership for individuals under 35 hovers around 36%. The Senate may consider this and other related crypto legislation after its August recess. Lummis also supports a broader framework for digital asset regulation. Concurrently, Representative Nancy Mace has introduced similar legislation in the House aimed at recognizing the value of digital assets in mortgage evaluations, mirroring the developments seen in Australia with Bitcoin-backed mortgages.

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