Delaware lawmakers have introduced two bills that would revamp the state’s banking law and create a licensing framework for stablecoin issuers and digital asset service providers. The package is part of a broader effort to modernize Delaware’s financial laws as states and federal agencies move to define how crypto and stablecoins should be regulated.
Summary
- Delaware has introduced two bills to modernize banking law and regulate stablecoin issuers and service providers.
- A stablecoin standard may impose authorization, retention, redemption, custody, privacy, and anti-money laundering rules.
- Senate Bill 16 would define digital assets and update Delaware’s banking code after decades.
Senator Spiros Mantzavinos and Representative Bill Bush have introduced Senate Bill 16, the Delaware Banking Modernization Act, and Senate Bill 19, the Delaware Payment Stablecoin Act. Delaware Senate Democrats said the package aims to reform the state’s banking code while adding consumer protections to new financial products.
Governor Matt Meyer supported the proposal and said,
“This legislative package sends a signal loud and clear: here in Delaware, we are democratizing our financial services and lowering the barriers to entry.”
The announcement said that the initiative is designed to help citizens send, receive and store money easily through digital financial tools.
Senate Bill 19 would create a licensing framework for stablecoin payment issuers and digital asset service providers operating for or on behalf of Delaware residents. The bill uses definitions taken from the GENIUS Act and other federal models, according to the announcement.
The proposal also contains a list of regulations, redemption time limits, currency levels, anti-money laundering activities, storage safeguards and data privacy floors. If the measure becomes law, the Federal Reserve Bank Commissioner will be directed to issue regulations within a set time frame.
The stablecoin bill is part of a wider package. The same announcement said another proposal, the Delaware Money Transmission & Virtual Currency Modernization Act, will be introduced in the coming days to limit which activities require a license and add more consumer protections.
The bank bill updates the country code and defines digital assets
Senate Bill 16 would make the first major revision of Title 5 of the Delaware Code since 1981. The bill would define digital assets in state banking law, expand the authority of the Federal Banking Commissioner, and revise governance and organizational requirements for state-chartered banks and trust companies.
Representative Bush said,
“It’s been more than four decades since we made any meaningful revisions to our nation’s banking laws, and in that time, the way people bank and conduct business has changed dramatically.”
This package also includes rules to support interstate trust company operations and the extensive fiduciary duties performed by out-of-state financial institutions in Delaware. Lawmakers say the goal is to keep Delaware competitive as financial services continue to change.
Debts are moving forward as crypto regulations remain in focus
Both bills have been assigned to the Senate Banking, Business, Insurance & Technology Committee. They will still need committee approval, passage in the full Senate and House, and the governor’s signature before becoming law.
Delaware’s move comes as crypto legislation remains in effect across the United States. In the same announcement, lawmakers said the package is part of an effort to build a new banking system while maintaining protections for consumers and the broader market.
At the federal level, the Securities and Exchange Commission’s proposal titled “Crypto Assets” is now under Office of Management and Budget review. That review adds to signs that both federal and state officials are moving toward more formal digital property laws.
