Crypto Mortgage Regulation Stalled? You Can Still Buy Now

On September 15, 2026, the Senate failed to advance the CLARITY Act, the bill meant to finally settle how digital assets are regulated in the United States. The cloture vote came up short at 49 to 50, eleven votes shy of the 60 it needed to move forward. For the crypto industry, it was a real setback. For anyone hoping that clearer rules would make it easier to buy a home using their crypto, it raised an obvious question: does this mean crypto mortgages are on hold too?

The short answer is no. The failed vote changes very little for borrowers who want to use a lender built for crypto from the ground up. The confusion comes from lumping every crypto mortgage together, when in reality there are two very different paths to one, and only one of them was ever waiting on Congress. This post breaks down what the CLARITY Act failure actually means, why some crypto mortgage products are tied to the regulatory calendar, and why crypto holders working with Milo do not have to wait for lawmakers to act.

What the CLARITY Act Failure Actually Means

The CLARITY Act would have created a federal framework for digital assets, dividing oversight between the SEC and the CFTC and giving the whole market a clearer rulebook. Its failure was less about crypto policy itself and more about an unresolved ethics fight in Congress, and the result is that a comprehensive market structure bill is effectively dead for 2026.

That is genuinely important for exchanges, token issuers, and the broader industry. But it is worth being precise about what did not happen. No existing crypto mortgage was cancelled. No lender lost the ability to originate loans. No borrower with a pending application had it frozen. The vote was about future federal architecture, not about whether you can pledge Bitcoin to buy a house today.

The reason this distinction matters is that the crypto mortgage market has quietly split into two models, and each one has a very different relationship with Washington.

Why Some Crypto Mortgages Are Tied to the Regulatory Calendar

The first model is the conforming path. This is the approach behind the newer, headline-grabbing products from large conventional lenders, and it runs through Fannie Mae. Earlier in 2026, Fannie Mae began allowing Bitcoin and certain stablecoins to be counted as reserve assets for conventional mortgages, and the first Fannie Mae-eligible crypto mortgage closed in June.

That progress is real, but it comes with strings attached. On the conforming path, your crypto generally does not help you qualify for the loan itself. You still have to meet the same income, credit score, and debt-to-income standards as any other conventional borrower, and reporting on these products describes collateral ratios as high as 250 percent, meaning a buyer might need to pledge $250,000 in Bitcoin to support a $100,000 down payment. Your crypto sits in the background as a reserve rather than doing the heavy lifting.

Because these loans flow through federally backed channels, they are directly exposed to the regulatory and legislative calendar. Agency guidance can shift, program terms can tighten, and the pace of expansion depends in part on the kind of clarity that bills like the CLARITY Act were supposed to provide. When Congress stalls, this path is the one that feels it.

How Milo's Structure Works Outside the Stalled Framework

Milo takes the second path, and it was designed differently on purpose. Milo is a non-conforming, direct lender that has funded more than $100 million in crypto mortgages by underwriting borrowers on the strength of their crypto holdings rather than treating those holdings as a side note. You can see how the crypto-backed mortgage works in full, but the structural points are what matter this week.

A few things follow from that structure. Your crypto can be the qualifying asset, not just a reserve, which means holders who struggle to fit a traditional income box still have a route to approval. Because Milo finances against pledged crypto directly, a borrower can finance up to the full purchase price and keep their stack intact instead of selling it. Keeping the crypto also means no sale, and no sale means no capital gains tax event triggered just to fund a down payment.

Just as important in a week like this one, Milo holds pledged collateral directly and does not rehypothecate it, so a borrower's Bitcoin is not quietly lent back out or turned into someone else's IOU. We covered why that distinction matters in our breakdown of the rehypothecation risk in Better's Coinbase mortgage. And because Milo does not route these loans through the conforming, federally backed system, its ability to originate them does not hinge on whether a market structure bill clears the Senate. The framework Milo operates in already exists. It did not disappear on September 15, and it does not need Congress to switch it back on.

None of this means crypto lending is risk-free. These are real loans backed by a volatile asset, and if the value of pledged crypto falls far enough, a margin call is possible, just as it is anywhere collateral is involved. The point is not that risk vanishes. The point is that the path itself keeps working regardless of what happens in the Capitol.

What Crypto Borrowers Can Do Right Now

Zoom out and the direction of travel is clear even without a federal bill. Analysts at Ledn project the Bitcoin-backed lending market could reach $1 trillion in outstanding loans within a decade. The demand is not waiting for permission, and the infrastructure to meet it is already being built.

For a crypto holder who wants to buy a home, the practical takeaway from the CLARITY Act failure is smaller than the headlines suggest. If you were planning to use a conforming, Fannie Mae-eligible product, expect that path to keep moving at the speed of regulators, which right now means slowly. If you want to move on your own timeline, a direct crypto lender lets you act today.

That comes down to a few concrete steps. Get clear on how much crypto you are willing to pledge and how much you want to keep in self-custody. Understand the difference between a reserve-asset product and a lender that treats your crypto as the qualifying asset. And know the risks going in, including how margin calls work if the market moves against you. None of these steps require a new law.

Buy Your Home Without Waiting for Washington

The CLARITY Act may return in some form down the road, but crypto holders do not have to sit on their hands until it does. Milo has been closing crypto mortgages for years, and a stalled Senate vote does not change that.

If you are ready to buy a home without selling your crypto, learn more and start your application at milo.io. For a side-by-side view of the market, see our full bitcoin-backed mortgage lender comparison.

Eligibility requirements apply and all loans are subject to approval. This article is for general information and is not financial advice.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.