Delaware lawmakers are advancing new efforts to regulate stablecoins as part of a broader push to modernize the state’s financial system.
According to a statement from the Delaware Senate Democrats, Senator Spiros Mantzavinos and Representative Bill Bush have introduced two key proposals: the Delaware Banking Modernization Act (Senate Bill 16) and the Delaware Payment Stablecoin Act (Senate Bill 19).
Governor Matt Meyer said the legislative package is designed to expand access to financial services, emphasizing that the state aims to lower barriers and make it easier for residents to send, receive, and store money using digital tools.
Delaware has long positioned itself as a crypto-friendly jurisdiction. In 2016, former Governor Jack Markell launched the Delaware Blockchain Initiative to attract blockchain companies, alongside incremental regulatory updates to support the sector.
Despite this, some firms exited the state last year. Coinbase, for example, reincorporated in Texas, citing concerns with Delaware’s Delaware Court of Chancery, which oversees corporate legal disputes. Officials hope the new bills will help bring such companies back.
Governor Meyer added that the administration is focused on attracting future-oriented industries, including building a more innovative and inclusive banking ecosystem.
Stablecoin bill outlines licensing framework
The Delaware Payment Stablecoin Act proposes a formal licensing regime for stablecoin issuers and digital asset service providers operating within the state.
The legislation draws on definitions and language from federal proposals, including the GENIUS Act, as well as other regulatory models.
It also introduces key safeguards such as reserve requirements, structured processes to address shortfalls, defined redemption timelines, capital standards, and anti-money laundering obligations.
If passed, the rules would be implemented by the State Bank Commissioner within a set timeframe.
Alongside the stablecoin proposal, the Delaware Banking Modernization Act focuses largely on traditional finance, updating corporate governance standards and operational requirements for in-state banks. However, it also incorporates provisions related to digital assets.
The bill aims to modernize Delaware’s banking code by formally defining digital assets, providing greater regulatory clarity on how they intersect with the traditional financial system.
Representative Bill Bush noted that the state’s banking laws have not seen significant updates in more than 40 years, despite major changes in how people manage money and conduct transactions. He emphasized the need for legislation to evolve alongside these shifts.
Both measures remain in early stages and are still far from becoming law. Next, they will be reviewed by the Delaware Senate Banking Committee before heading to the full Delaware Senate for debate.
Lawmakers also signaled plans to introduce another proposal soon—the Delaware Money Transmission & Virtual Currency Modernization Act—which would focus on strengthening consumer protections and standardizing licensing requirements for financial activities.
Broader US push for crypto clarity
Delaware’s efforts come amid a wider push across the US to clarify crypto regulation.
Bill Cassidy said in a post on X that he intends to move forward with federal legislation aimed at modernizing crypto tax rules.
The bill, introduced with Cynthia Lummis in September, seeks to address key taxation challenges and support broader adoption of digital assets.
Among its provisions are a $300 de minimis exemption for crypto transactions, measures to eliminate double taxation for miners and stakers, and efforts to align crypto taxation with other financial assets.
Cassidy stressed that maintaining leadership in digital assets is important for both the US economy and national security, underscoring the growing urgency among policymakers to establish clear regulatory frameworks.
On Friday, the US Securities and Exchange Commission submitted two proposed rules to the Office of Management and Budget for review, including a measure that could classify most crypto assets as non-securities under federal law.
If adopted, the proposal would mark a significant shift in the SEC’s regulatory stance and could place primary oversight of non-security crypto assets under the Commodity Futures Trading Commission.
Responding on X, CFTC chairman Mike Selig said both agencies aim to end the regulatory “limbo” surrounding crypto and bring greater clarity to the market.
