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The bill lets crypto holdings be used to meet mortgage reserve requirements—expanding access for crypto holders—while increasing volatility-driven risks to lenders and taxpayers and imposing additional compliance costs that may be passed to consumers.
Homebuyers holding qualifying digital assets can count those crypto assets toward single‑family mortgage reserve requirements without converting them to dollars, potentially improving mortgage eligibility and access to homeownership.
Borrowers and lenders will have clearer, standardized rules because regulated custodians and FHFA/enterprise board review are required, reducing uncertainty about acceptable proof of reserves and creating governance before new assessment methods take effect.
Taxpayers and financial institutions benefit from required risk‑based adjustments and periodic reviews that force issuers to account for volatility and liquidity, aiming to limit exposure to crypto price swings.
Taxpayers, lenders, and middle‑class families face increased mortgage default and loss risk if including volatile digital assets in reserves leads to understatement of price swings and higher losses during crypto downturns.
Homebuyers and middle‑class families may be incentivized to leverage volatile crypto to qualify for mortgages, increasing borrower financial fragility and the chance of foreclosure if asset values fall.
Mortgage lenders and consumers may face higher operational and compliance costs from regulated custody requirements and FHFA review; those costs could be passed on to borrowers through higher fees or interest rates.
Based on analysis of 2 sections of legislative text.
Requires Fannie Mae and Freddie Mac to allow certain borrower digital assets in qualified custody to count as reserves for single‑family mortgage risk assessments, with risk adjustments and FHFA review.
Requires the two government‑sponsored mortgage corporations to allow certain borrower holdings of defined digital assets, when held under specified qualified custodial arrangements, to be counted as reserves for single‑family mortgage risk assessments without converting them to U.S. dollars. It also requires risk‑based haircuts for volatility, liquidity, and concentration, board approval of methodologies, and submission of those methodologies to the Federal Housing Finance Agency for review. Also includes a short title provision naming the act. The main change is technical and regulatory: it expands what can be treated as reserves for mortgage risk purposes and sets conditions, oversight, and review processes for that treatment.
Introduced July 28, 2025 by Cynthia M. Lummis · Last progress July 28, 2025