Ungrading is an emancipatory pedagogy that focuses on evaluative assessment of learning. Self-regulated learning (SRL) has consistently been referred to as the learning theory that undergirds ungrading, but SRL--with its deficit frame in the literature and in practice--fails to uphold ungrading's emancipatory aims. An asset-framed learning theory--one that combines the cultural orientation of funds of knowledge with the power dynamics of community cultural wealth--is proposed as an alternative to SRL. The proposed learning theory aligns ungrading to its emancipatory aims and may provide an opportunity to better understand the learning that occurs in ungraded classrooms. Scholarly and practical impacts for Science, Technology, Engineering, and Mathematics (STEM), and specifically biology, educational research and practice include investigating the plausibility of mixing learning theories, aligning learning theory to emancipatory aims and researching how faculty activate funds of knowledge and community cultural wealth, both individually and collectively, in ungraded STEM classrooms.