Two Delaware legislators have introduced a pair of bills designed to overhaul the state’s financial regulatory framework, with a particular focus on digital assets and stablecoins. 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 a statement from the Delaware Senate Democrats released on Monday. The package is intended to lower barriers to financial participation for residents and businesses operating in the state.
Delaware Governor Matt Meyer expressed support for the legislation, framing it as an effort to democratize financial services and make it simpler for residents to send, receive, and save money using an internet connection. Meyer added that the administration is focused on drawing future-oriented jobs to the state, including by fostering an innovative banking environment. The bills are seen as part of a broader effort to re-attract technology and crypto companies that have recently departed.
Delaware has historically maintained a welcoming stance toward blockchain and crypto industries. As early as 2016, former Governor Jack Markell launched the Delaware Blockchain Initiative to draw blockchain firms to the state. However, several companies left last year, including Coinbase, which reincorporated in Texas after expressing dissatisfaction with Delaware’s Chancery Court over how it handles corporate law disputes.
The stablecoin-focused bill proposes a licensing framework for stablecoin issuers and digital asset service providers operating within the state. It draws on language and definitions from the federal GENIUS Act and other federal models. Key provisions include reserve shortfall remediation cascades, mandatory redemption timing standards, capital requirements, and anti-money laundering obligations. If passed, the State Bank Commissioner would be required to implement the rules within a defined timeframe.
The Banking Modernization Act primarily addresses traditional finance, updating corporate governance and organizational requirements for local banking institutions, while also incorporating references to digital assets. The bill seeks to introduce formal definitions of digital assets into Delaware’s banking code to provide regulatory clarity on how they relate to conventional financial systems. Representative Bush noted that meaningful updates to the state’s banking laws have not been made in over four decades, during which time banking and transaction practices have changed considerably.
Both bills must still pass through the Senate Banking Committee before being debated by the full Delaware Senate, meaning they remain some distance from becoming law. The lawmakers also announced plans to file an additional proposal in the coming days, the Delaware Money Transmission & Virtual Currency Modernization Act, which would focus on consumer protections and standardize licensing requirements for relevant financial activities.
The Delaware developments come alongside activity at the federal level. US Senator Bill Cassidy announced via X on Monday that he intends to advance a bill to update crypto tax rules, originally introduced alongside Senator Cynthia Lummis in September. The proposal includes a $300 de minimis exemption for crypto purchases, an end to double taxation for miners and stakers, and tax parity with other financial assets. Separately, the US Securities and Exchange Commission sent two proposed rules to the White House‘s Office of Management and Budget for review, one of which could result in most crypto assets no longer being classified as securities, with primary oversight potentially shifting to the Commodities Futures Trading Commission. CFTC chairman Mike Selig said both agencies aim to end the regulatory uncertainty that has left crypto markets in limbo.
Originally reported by CoinTelegraph.
