Recently, there has been intense discussion in the U.S. political arena regarding an innovative proposal involving mortgage Collateral. The "21st Century Mortgage Act," proposed by Republican Senator Lummis, aims to include encryption in the consideration of mortgage Collateral. This proposal stems from previous comments made by William J. Pulte, the Director of the Federal Housing Finance Agency, who stated that Fannie Mae and Freddie Mac could consider using encryption as mortgage Collateral.

According to this bill, the custody digital assets held by borrowers that meet the regulations may be counted as reserves without the need to be first exchanged for USD. However, considering the characteristics of the cryptocurrency market, these assets will require volatility valuation adjustments.

This proposal has sparked significant divisions between the two parties in Congress. Republicans believe it will inject new vitality into the real estate market and provide more financial options for digital asset holders. However, Democratic senators collectively expressed opposition, emphasizing that the high volatility of encryption assets could pose a threat to the stability of the real estate market, while also pointing out potential security risks.

Currently, the focus of the controversy is mainly on two aspects: first, whether cryptocurrency assets should be included in the category of collateral; second, if they are included, how to set a reasonable valuation discount rate to effectively hedge risks. This debate not only concerns the future development of the real estate market but also reflects the collision and integration between the traditional financial system and the emerging digital economy.

As the discussion deepens, the final outcome of this bill may have a profound impact on the U.S. real estate market and the encryption industry. Regardless of the result, this debate marks another important test of the status of digital assets in the mainstream financial realm.