Two Delaware lawmakers have proposed stablecoin regulation as part of a broader effort to modernize the state’s financial laws. Senator Spiros Mantzavinos and Representative Bill Bush filed the Delaware Banking Modernization Act (Senate Bill 16) and the Delaware Payment Stablecoin Act (Senate Bill 19), the Delaware Senate Democrats said in a statement.
Governor Matt Meyer said the package signals Delaware’s intention to “democratize” financial services and lower barriers to entry so residents can send, receive and save money with an internet connection. Delaware has long sought to be crypto- and blockchain-friendly—dating back to the 2016 Delaware Blockchain Initiative—and has made incremental regulatory changes to support the sector. Still, some firms left the state last year, including Coinbase, which reincorporated in Texas after expressing dissatisfaction with Delaware’s Chancery Court. Supporters say the new bills could help attract such businesses back.
The Delaware Payment Stablecoin Act aims to establish a licensing framework for stablecoin issuers and digital asset service providers operating in the state. It borrows language and definitions from the federal Stablecoins Act (the GENIUS Act) and other federal models. The bill lays out possible safeguards including reserve shortfall remediation cascades, mandatory redemption timing standards, capital requirements and anti-money laundering obligations. If passed, the State Bank Commissioner would be directed to issue implementing rules within a set timeframe.
The Delaware Banking Modernization Act mainly targets traditional banking law, updating corporate governance and organizational requirements for local banks, but it also explicitly references digital assets. It would add definitions of digital assets to the state banking code to provide more regulatory clarity on how those assets intersect with traditional finance. Rep. Bush noted that it has been decades since Delaware updated its banking laws and argued they must reflect how banking and transactions have evolved.
Both bills must still move through the legislative process: they will be reviewed by the Senate Banking Committee before being debated in the full Senate. Lawmakers also said they will soon file a separate Delaware Money Transmission & Virtual Currency Modernization Act intended to strengthen consumer protections and standardize the activities that require licensing.
The Delaware proposals arrive amid broader U.S. activity on crypto regulation. Senator Bill Cassidy said he plans to advance federal legislation—introduced with Senator Cynthia Lummis—that would modernize crypto tax rules, including a $300 de minimis exemption for purchases, ending double taxation for miners and stakers, and aligning crypto taxation with other financial assets. Cassidy stressed the importance of American leadership on digital assets for economic and national security.
At the federal regulatory level, the U.S. Securities and Exchange Commission recently sent two proposed rules to the White House Office of Management and Budget for review, including one that would result in most crypto assets not being treated as securities under federal law. That change could shift primary oversight of non-security crypto to the Commodity Futures Trading Commission. CFTC Chairman Mike Selig said the agencies want to end the industry’s regulatory “limbo” and provide clearer rules for crypto markets.
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