Delaware lawmakers have introduced two bills aimed at bringing the state’s financial regulations into step with digital assets and modern banking practices.
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), according to the announcement. Both proposals are part of what the lawmakers describe as a broader effort to modernize the state’s financial sector.
Senate Bill 19 would establish a licensing framework for stablecoin issuers and digital asset service providers operating in Delaware. It adopts language and definitions from the federal GENIUS Act and other federal models, and outlines reserve shortfall remediation cascades, mandatory redemption timing standards, capital standards, and anti-money laundering obligations. If passed, the State Bank Commissioner would be directed to implement the rules within a specified timeframe.
Senate Bill 16 is primarily focused on traditional banking — updating corporate governance and organizational requirements for local institutions — but also introduces definitions of digital assets into Delaware’s banking code to provide regulatory clarity around how they relate to conventional finance.
“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,” said Rep. Bush.
The last significant update to Delaware’s banking code was in 1981.
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Delaware’s relationship with crypto has a longer history. Former Governor Jack Markell launched the Delaware Blockchain Initiative in 2016 to attract blockchain firms to the state. That goodwill eroded for some companies — Coinbase reincorporated in Texas last year after expressing dissatisfaction with Delaware’s Chancery Court, which handles corporate law disputes. The new bills are seen as part of an effort to reverse that trend.
Governor Matt Meyer framed both bills around economic competitiveness. “This legislative package sends a signal loud and clear: here in Delaware, we’re democratizing our financial services and lowering the barriers to entry, making it easier for all residents to send, receive and save money with just an internet connection,” he said.
A third bill is also coming. The announcement said lawmakers plan to file the Delaware Money Transmission & Virtual Currency Modernization Act in the coming days, focused on consumer protections and standardizing licensing requirements for money transmission and virtual currency activities.
Both existing bills must clear the Senate Banking Committee before reaching the full Delaware Senate for debate.
Delaware is not alone in moving on crypto legislation this week. US Senator Bill Cassidy posted on X that he plans to advance a federal bill to update crypto tax rules, introduced alongside Senator Cynthia Lummis in September. That proposal includes a $300 de minimis exemption for crypto transactions.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial or investment advice.
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