Crypto Might Be Recognized in Home Loan Applications - U.Today

Rep. Nancy Mace is renewing her push to change how Americans’ cryptocurrency wealth is treated in mortgage applications

In her July 19 post on Elon Musk's X social media network, Mace argued that owning cryptocurrency should not prevent Americans from achieving homeownership

She has once again promoted her American Homeowner Crypto Modernization Act, which would require federal housing agencies to modernize their mortgage underwriting rules

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"Owning crypto should not disqualify you from owning a home," Mace wrote.

"The American Dream is homeownership. Washington keeps making it harder to get there. Hardworking Americans who have built real wealth through cryptocurrency cannot use those assets to qualify for a mortgage. The system is stuck in the past," she said

Mace has emphasized that her legislation would bring mortgage rules “into the 21st century."

The current state of the bill

The bill was reintroduced by Mace last year and is currently at the committee stage. It was referred to the House Committee on Financial Services and the House Committee on Veterans’ Affairs.

The purpose of the bill is to require federal housing agencies to update mortgage underwriting programs, guidelines, and standards

The legislation targets the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Agriculture (USDA), the Department of Veterans Affairs (VA), and the Federal Housing Finance Agency (FHFA).

The proposal would not mean that borrowers could simply list any crypto wallet balance. Instead, the legislation focuses on verified crypto holdings. Borrowers would be required to provide proof of ownership, transaction records, exchange documentation, and so on.

Traditional mortgage evaluations commonly consider various assets, such as savings accounts, investment accounts, stocks, bonds, and so on. However, cryptocurrency holdings are generally treated differently. Mace argues that this creates an unfair barrier for crypto investors.

"If you worked hard, built wealth, and want to buy a home, the federal government should not stand in the way because the system refuses to recognize your assets," she wrote.

The legislation still faces the normal congressional process. Before any changes occur, the bill would need to move through committee review, pass both chambers of Congress, and receive presidential approval.