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Senator Lummis Proposes Bill Allowing Large Banks to Offer Regulated Digital Asset Services

Senator Cynthia Lummis stated that the Responsible Financial Innovation Act, pending Senate Banking Committee review, could authorize banks to provide regulated custody, staking, and payment services for digital assets.

Fact Check
The evidence overwhelmingly and consistently supports the statement. Multiple sources with high relevance directly identify Senator Lummis as the sponsor of a specific piece of legislation, the "Responsible Financial Innovation Act." Several of these sources (from a legal review, an advocacy group, and financial news sites) explicitly state that a key provision of this bill is to authorize "depository institutions"—the formal term for banks—to issue stablecoins. Issuing stablecoins is a significant digital asset service. For example, the profile from "Stand With Crypto" mentions the bill authorizes depository institutions to issue stablecoins, and the analysis from AInvest and reports from Bitget News and Blockchain Magazine all corroborate that the bill would permit, or even restrict, stablecoin issuance to these banking institutions. The blog post from OneSafe further reinforces this by stating the bill's purpose is to regulate digital assets and provide banking options. The highest authority source, the Senate Banking Committee document, confirms that creating a regulatory framework for digital assets is a committee priority, providing official context for Senator Lummis's legislative work. There are no contradictions across the sources, and the core claim is supported by specific details that are consistent across multiple independent reports.
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Summary

Senator Cynthia Lummis said the Responsible Financial Innovation Act would permit major banks to offer regulated custody, staking, and payment services for digital assets. The regulatory framework is intended to enhance consumer protection while expanding institutional access to digital asset markets. The Senate Banking Committee may hold a revision meeting in the second week of January, following months of delay, to address updates to the bill and move it toward potential approval.

Terms & Concepts
  • Digital Asset Custody: Secure storage of cryptocurrencies and other digital assets provided by financial institutions.
  • Staking: Locking crypto to earn rewards by supporting blockchain operations.
  • Responsible Financial Innovation Act: Proposed legislation in the United States aiming to regulate and integrate digital asset services into the traditional banking sector.