,,ii #aaith ,,congress #ast ,session ,s4 #bdga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bh1 #bjbe,ms4 ,lummis introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to require government-sponsored enterprises to consider digital assets in a mortgage loan risk assessment4 #a4 ,short title ,this ,act may be cited as the #bast ,century ,mortgage ,act of #bjbe4 #b4 ,consideration of ,digital ,assets 7a7 ,federal ,national ,mortgage ,association ,section #cjb7;b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7;b77 is amended by adding at the end the following3 7#h7 ,digital ,assets in ,mortgage ,risk ,assessments 7,a7 ,definitions ,in this paragraph3 7i7 ,digital asset ,the term digital asset-- 7,i7 means any digital representation of value that is recorded on a cryptographically-secured distributed ledger2 and 7,,ii7 does not include any asset that-- 7aa7 is not commercially fungible1 including a digital collectible or other unique asset described in subclause 7,i72 or 7bb7 represents ownership of1 or control over1 an asset that is not itself an asset described in subclause 7,i74 7ii7 ,qualified ,custodial ,arrangement ,the term qualified custodial arrangement means-- 7,i7 custody of a digital asset by a third-party custodian who is chartered1 licensed1 or otherwise regulated under ,federal or ,state law and is subject to the jurisdiction of the courts of the ,united ,states2 or 7,,ii7 a multi-party custodial arrangement in which a controlling quorum of any private key1 account1 or other control component sufficient to authorize a transfer of the digital asset is held by custodians described in subclause 7,i71 and the arrangement is subject to an enforceable governing agreement under the laws of the ,united ,states4 7,b7 ,digital ,assets as ,reserves ,the corporation shall1 in assessing the risk of a single-family mortgage loan1 permit the holdings of a borrower in a digital asset1 evidenced and maintained pursuant to a qualified custodial arrangement1 to be included in the reserves of a borrower without conversion of the digital asset to ,united ,states dollars4 7,c7 ,risk ,mitigation ,in carrying out subparagraph 7,b71 the corporation shall-- 7i7 apply any appropriate adjustment for market volatility and liquidity of the digital asset2 7ii7 apply any appropriate adjustment for concentration of digital assets as a portion of reserves2 and 7iii7 periodically review and update any risk-based adjustment applied under clauses 7i7 and 7ii74 7,d7 ,notice and ,approval ,prior to implementing or materially revising any methodology used to assess a digital asset under this paragraph1 the corporation shall submit the proposed methodology to the board of directors of the corporation for approval and1 upon approval1 to the ,director of the ,federal ,housing ,finance ,agency for review4 4 7b7 ,federal ,home ,loan ,mortgage ,corporation ,section #cje of the ,federal ,home ,loan ,mortgage ,corporation ,charter ,act 7#ab ,u4,s4,c4 #aded7 is amended by inserting at the end the following3 7e7 ,digital ,assets in ,mortgage ,risk ,assessments 7#a7 ,definitions ,in this subsection3 7,a7 ,digital ,asset ,the term digital asset-- 7i7 means any digital representation of value recorded on a cryptographically-secured distributed ledger2 and 7ii7 does not include any asset that-- 7,i7 is not commercially fungible1 including a digital collectible or other unique asset described in clause 7i72 or 7,,ii7 represents ownership of1 or control over1 as asset that is not itself an asset described in clause 7i74 7,b7 ,qualified ,custodial ,arrangement ,the term qualified custodial arrangement means-- 7i7 custody of a digital asset by a third-party custodian who is chartered1 licensed1 or otherwise regulated under ,federal or ,state law and is subject to the jurisdiction of the courts of the ,united ,states2 or 7ii7 a multi-party custodial arrangement in which a controlling quorum of any private key1 account1 or other control component sufficient to authorize a transfer of the digital asset is held by custodians described in clause 7i71 and the arrangement is subject to an enforceable governing agreement under the laws of the ,united ,states4 7#b7 ,digital ,assets as ,reserves ,the ,corporation shall1 in assessing the risk of a single-family mortgage loan1 permit the holdings of a borrower in a digital asset1 evidenced and maintained pursuant to a qualified custodial arrangement1 to be included in the reserves of a borrower without conversion of the digital asset to ,united ,states dollars4 7#c7 ,risk ,mitigation ,in carrying out paragraph 7#b71 the ,corporation shall-- 7,a7 apply any appropriate adjustment for market volatility and liquidity of the digital asset2 7,b7 apply any appropriate adjustment for concentration of digital assets as a portion of reserves2 and 7,c7 periodically review and update any risk-based adjustment applied under subparagraphs 7,a7 and 7,b74 7#d7 ,notice and ,approval ,prior to implementing or materially revising any methodology used to assess digital assets under this subsection1 the ,corporation shall submit the proposed methodology to the ,board of ,directors for approval and1 upon approval1 to the ,director of the ,federal ,housing ,finance ,agency for review4 4