Delaware lawmakers have introduced legislation aimed at creating a comprehensive regulatory structure for payment stablecoin issuers. Known as the Delaware Payment Stablecoins Act, Senate Bill 19 was introduced on Tuesday. The measure would establish licensing, reserve, custody, and disclosure requirements for companies that issue stablecoins to state residents. The move reflects a broader effort by states to position themselves as preferred destinations for digital asset firms.
If enacted, the bill would reinforce Delaware’s established reputation as a center for corporate and financial law. The state could become a favored jurisdiction for stablecoin issuers that prefer state-level oversight over a federal charter. The legislation includes language stating that Delaware has a compelling interest in building a stablecoin regulatory framework that is competitive, protective of consumers, and consistent with federal standards.
The proposal is designed to work alongside the federal Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly referred to as the GENIUS Act, which was signed into law in July of last year. That federal law established a national framework for stablecoin oversight and permits state-chartered issuers to operate under state supervision, provided the state’s regulatory regime is deemed substantially similar to federal requirements. Delaware’s bill explicitly seeks to qualify under that provision.
Dollar-pegged stablecoins currently account for approximately $305 billion in global circulation, with the large majority linked to the U.S. dollar. Standard Chartered projects the sector will expand significantly, potentially surpassing $2 trillion by the close of 2028. Analysts suggest that figure could grow further beyond the end of the decade as federal legislation provides a clearer path for firms to scale their operations.
Under the proposed rules, stablecoin issuers would be required to maintain reserves on at least a one-to-one basis, using assets such as cash, bank deposits, and short-term U.S. Treasury securities. Issuers would also need to publish monthly reserve reports and fulfill redemption requests within defined timeframes. These requirements are intended to ensure that each stablecoin in circulation is backed by sufficient liquid assets.
Companies seeking to operate under the framework would need to obtain one of several licenses, including a payment stablecoin issuer license or a digital asset service provider license. The bill additionally prohibits issuers from paying interest on stablecoins unless federal law explicitly allows it. This restriction reflects an ongoing policy debate in Washington over whether stablecoins should be treated more like bank deposits or as pure payment instruments.
Originally reported by Decrypt.
