Delaware lawmakers introduce bills to update banking law, license stablecoin firms

Senator Spiros Mantzavinos and Representative Bill Bush introduced the Delaware Banking Modernization Act (SB16) and the Delaware Payment Stablecoin Act (SB19). Both bills were assigned to the Senate Banking, Business, Insurance & Technology Committee. The sponsors presented the measures as part of a broader update to the state’s financial framework.

SB19 would require payment stablecoin issuers and digital asset service providers that serve Delaware residents to obtain a state license. The text uses definitions drawn from the federal GENIUS Act crypto regulation and other federal models and sets standards for reserves, redemption timeframes, capital, anti-money-laundering programs, custody safeguards and baseline data privacy. If enacted, the State Bank Commissioner would be directed to issue regulations on a set schedule.

Lawmakers outlined a related proposal, the Delaware Money Transmission & Virtual Currency Modernization Act, expected to be filed to clarify which activities require a license and to add further consumer protections for digital financial services.

SB16 would be the first major revision to Title 5 of the Delaware Code since 1981. The bill defines digital assets in state banking law, expands the State Bank Commissioner’s authority, and updates governance and organizational standards for state-chartered banks and trust companies. It also includes provisions to support interstate trust company operations and permit broader fiduciary activity by out-of-state financial institutions in Delaware.

Governor Matt Meyer backed the effort, calling the package “a signal loud and clear: here in Delaware, we’re democratizing our financial services and lowering the barriers to entry.” Representative Bill Bush pointed to the long gap since the last update, noting, “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 bills must clear the committee, pass the full Senate and House, and receive the governor’s signature before becoming law. The debate in Delaware is occurring while state and federal officials develop more formal rules for digital assets. At the federal level, a Securities and Exchange Commission proposal titled “Crypto Assets” is under Office of Management and Budget review.