Delaware lawmakers have introduced two bills that would update state 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 rules as states and federal agencies move to define how crypto and stablecoins should be regulated.
Summary
- Delaware filed two bills to modernize banking law and regulate stablecoin issuers and service providers.
- The stablecoin measure would set licensing, reserve, redemption, custody, privacy, and anti-money laundering rules.
- Senate Bill 16 would define digital assets and update Delaware banking code after decades.
Senator Spiros Mantzavinos and Representative Bill Bush filed 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 update the state’s banking code while adding consumer protections for newer financial products.
Governor Matt Meyer backed the proposal and said,
”This legislative package sends a signal loud and clear: here in Delaware, we’re democratizing our financial services and lowering the barriers to entry.”
The announcement said the effort is meant to help residents send, receive and store money more easily through digital financial tools.
Senate Bill 19 would create a licensing framework for payment stablecoin issuers and digital asset service providers working with or on behalf of Delaware residents. The bill uses definitions drawn from the federal GENIUS Act and other federal models, according to the announcement.
The proposal also lists reserve rules, redemption timing standards, capital standards, anti-money laundering duties, custody safeguards and data privacy floors. If the measure becomes law, the State Bank Commissioner would be directed to issue implementing regulations within set timeframes.
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 filed in the coming days to standardize which activities require a license and to add more consumer protections.
Banking bill updates state code and defines digital assets
Senate Bill 16 would make the first major revision to Title 5 of the Delaware Code since 1981. The bill would define digital assets in state banking law, expand the State Bank Commissioner’s authority, and update governance and organizational requirements for state-chartered banks and trust companies.
Representative Bush said,
”It’s been more than four decades since we’ve made any meaningful updates to our state’s banking laws, and in that time, the way people bank and conduct transactions has changed significantly.”
The package also includes rules to support interstate trust company operations and broader fiduciary activity by out-of-state financial institutions in Delaware. Lawmakers said the aim is to keep Delaware competitive as financial services continue to change.
Bills move forward as crypto rules stay in focus
Both bills have been assigned to the Senate Banking, Business, Insurance & Technology Committee. They would still need committee approval, passage in the full Senate and House, and the governor’s signature before becoming law.
The Delaware move comes as crypto regulation remains active across the United States. In the same announcement, lawmakers said the package is part of an effort to build an innovative banking system while keeping protections in place for consumers and the wider market.
At the federal level, a Securities and Exchange Commission proposal titled “Crypto Assets” is now under Office of Management and Budget review. That review status adds to signs that both state and federal officials are moving toward more formal digital asset rules.
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