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Sen. Cynthia Lummis (R-WY) has introduced a bill to codify the directive made by Bill Pulte, director of the Federal Housing Finance Agency, that would allow cryptocurrency to be considered as an asset for mortgages delivered to the government-sponsored enterprises (GSEs).

Lummis’ “21st Century Mortgage Act” would direct Fannie Mae (OTCQB: FNMA) and Freddie Mac (OTCQB: FMCC) 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 also prohibit forcing the conversion of these assets into dollars, which Lummis described as “respecting the nature of digital wealth.”

“The American dream of homeownership is not a reality for many young people,” said 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.”

Lummis’ bill stands in conflict with efforts by Senate Democrats led by Sen. Elizabeth Warren (D-MA), who warned that Pulte’s directive would “introduce unnecessary risks” and “pose serious safety and soundness concerns” in a market that is not designed to accommodate digital assets.

“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 US dollars and is accompanied by appropriate documentation,” Warren wrote in a letter to Pulte. “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.”