Delaware legislators have launched a coordinated effort to create a unified framework for digital assets, targeting stablecoins and expanding the role of state-chartered banks in digital asset custody. The initiative introduces two bipartisan bills designed to bring clarity and regulatory structure to digital finance within the state. These measures come as a response to rapid changes in banking and payment technologies, with additional legislation related to money transmission and virtual currencies expected soon.
Unified Oversight For Stablecoin Issuers
The first of the two bills, SB 19, proposes a licensing and oversight regime for payment stablecoin issuers and digital asset service providers who serve Delaware residents. This approach draws heavily from definitions in the federal GENIUS Act and related guidance from the Office of the Comptroller of the Currency, aiming to tie Delaware’s rules closely to emerging federal norms. The framework is intended to help ensure that state-regulated firms remain in line with national standards as they evolve.
SB 19 outlines specific operating requirements for stablecoin activities, including reserve thresholds, immediate remediation steps in case of reserve deficiencies, standards for redeeming value, and obligations related to capital, anti-money laundering protocols, and data privacy. The bill also details procedures for change-of-control events, strong custody protections for digital assets, and an option for federally chartered firms to convert to a Delaware state charter. Under the proposal, the State Bank Commissioner would be required to update regulations so they remain current with federal developments.
Modernized Banking Laws For Digital Assets
SB 16, the second bill, is known as the Delaware Banking Modernization Act of 2026. It would revise Title 5 of the state’s legal code, formally introducing definitions for “digital asset” and “virtual currency” and expanding the State Bank Commissioner’s regulatory authority over these areas. One key amendment clarifies that digital assets are recognized as personal property under Delaware fiduciary law. This legal position allows state-chartered banks and trust companies to hold and manage such assets on behalf of clients.
With this change, traditional financial institutions in Delaware could play a greater role in providing custody and administration for both institutional and retail clients’ crypto assets. Lawmakers leading the bill, including Sen. Spiros Mantzavinos and Rep. Bill Bush, emphasized the need for legal updates in a sector largely unchanged for over 40 years, during which banking and payment behaviors have evolved rapidly.
Bank Commissioner Lisa Collison commented on the fast-paced transformation within financial services, describing how new technologies and payment channels are reshaping money movement and access to financial products. She argued that legal frameworks must adapt to effectively oversee these changes.
Anticipated Regional Coordination Measures
Delaware also plans to introduce the Delaware Money Transmission & Virtual Currency Modernization Act in the near term, built on guidance from the Conference of State Bank Supervisors. This legislation aims to replace outdated money transmission statutes and facilitate smoother cross-state coordination on licensing and supervision. Officials intend for the upcoming proposal to bring uniformity to identifying activities requiring licensure and to update protective measures for customer funds.
