Bitcoin Set to Enter Regulated Banking Under the U.S. Responsible Financial Innovation Act as Senate Prepares Markup

Senator Cynthia Lummis, sponsor of the Bitcoin Strategic Reserve Act and chair of the Senate Banking Committee’s Digital Assets Working Group, asserts that the Responsible Financial Innovation Act would permit banks to provide digital asset custody, staking, and payment services under a regulatory regime. The objective is to weave digital assets into the regulated banking system, strengthening consumer protection and unlocking growth.

Legislative timetable signals a markup in the second week of January after months of delay. The move marks a milestone for the bill, which has faced Democratic concerns about decentralized finance and the shutdown, as committees seek clearer rules around crypto markets and institutional adoption.

Experts say a clear regulatory framework could spur risk-managed expansion of crypto services, focusing on consumer protection, compliance, and robust governance. If markup advances, banks may offer credible, institutional-grade custody and settlement for digital assets, aiding risk controls and broader adoption while maintaining prudent oversight.