Key Highlights
- Delaware updates banking laws with SB 16 and SB 19 to guide stablecoins and digital asset companies.
- New rules aim to protect consumers while creating clear paths for crypto firms in Delaware.
- SB 19 aligns state regulations with federal standards, including reserve rules and anti-money laundering steps.
Delaware is updating its banking rules to keep pace with new technologies, including stablecoins. On Monday, Senator Spiros Mantzavinos and Representative Bill Bush introduced two bills: the Delaware Banking Modernization Act (SB 16) and the Delaware Payment Stablecoin Act (SB 19).
The bills are intended to modernize Delaware’s banking rules and provide clear guidance for companies handling digital assets and stablecoins. Lawmakers discussed the measures Monday at the University of Delaware’s STAR Campus, stressing the need to keep banking laws in step with today’s technology.
Governor Matt Meyer expressed strong support for the initiative. “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.
“Modernizing Delaware’s banking code is long overdue,” said Sen. Mantzavinos. “We’re continuing the tradition that made us successful in the first place.” The state’s financial sector employs about 9% of workers—almost double the national average—showing why these updates matter.
Why now: The competitive pressure behind the push
Delaware’s urgency isn’t just about keeping pace with technology—it’s about keeping pace with rival states. In late 2025, Coinbase, the largest publicly traded crypto exchange in the U.S., completed its reincorporation from Delaware to Texas, citing unpredictable rulings from Delaware’s Chancery Court.
The move followed Tesla and SpaceX, which had already left the state. The trend, dubbed “Dexit,” has put pressure on Delaware to demonstrate it remains business-friendly, particularly for the crypto and fintech sectors.
While the actual number of departures remains small—only 28 companies left Delaware in 2025 compared to over 249,000 new entities formed—the symbolic loss of high-profile crypto firms has added urgency to the modernization effort.
Modernizing Delaware’s banking landscape
SB 16, the Delaware Banking Modernization Act, is the first major update to the state’s banking laws since 1981. The bill defines digital assets, gives the State Bank Commissioner more authority, and simplifies rules for state-chartered banks and trust companies.
It also makes it easier for banks to operate across state lines and expands the role of out-of-state financial institutions. Specifically, SB 16 adds definitions for “digital asset” and “virtual currency” to the Delaware Code, meaning Delaware-chartered banks and institutions can issue and manage virtual currencies.
It also grants the Banking Commissioner the ability to hire outside consultants and experts, and provides greater flexibility on requirements for institutional approval.
“We need to make sure our laws are keeping up with these changes,” said Rep. Bush. “These bills help us do just that while reinforcing strong protections for consumers.”
In addition, Delaware plans to introduce the Money Transmission & Virtual Currency Modernization Act. Modeled after the CSBS Money Transmission Model Act, it standardizes licensing requirements, strengthens consumer protections, and ensures financial safety while supporting innovation. This third bill has not yet been filed; lawmakers indicated it would be introduced in the coming days. “Financial services are evolving at a pace that would have been difficult to imagine a decade ago,” said State Bank Commissioner Lisa Collison.
Stablecoin framework and federal alignment
SB 19 sets up a licensing system for companies that issue payment stablecoins or provide digital asset services. The bill uses federal definitions from the GENIUS Act and includes rules on reserves, redemption timing, and capital requirements.
Under the GENIUS Act, signed into law in mid-2025, stablecoin issuers with less than $10 billion in outstanding assets may operate under state regulations, while those at or above $10 billion fall under federal supervision. Delaware’s SB 19 is specifically designed to attract and regulate those smaller issuers. The bill creates three distinct license types: payment issuer, digital asset service provider, and a combination license.
New companies entering the state in this space would need at least $5 million in capital and must maintain reserves equal to at least 12 months of projected operating expenses. Stablecoin issuers must redeem transactions within two business days, and if a redemption request exceeds 10% of outstanding issuance within a 24-hour period, the window extends to seven days.
Notably, issuers are prohibited from paying interest or yield to stablecoin holders. Redemption fees can only be changed with seven days’ notice. The Banking Commissioner would also have the power to impose additional capital requirements above the minimum, depending on a company’s risk profile.
It also covers anti-money laundering steps, data privacy, custody protections, and a way for firms to move from federal to state charters. “These changes reflect exactly the kind of thoughtful modernization our members have been asking for,” said Karyn Polak of the Delaware Bankers Association.
Delaware’s push comes as federal agencies also act. The SEC recently clarified which crypto assets count as securities, creating a formal token classification. Meanwhile, Senators Thom Tillis and Angela Alsobrooks are negotiating rules around stablecoin yield programs to balance innovation with banking safety.
In a post on X, U.S. Senator Bill Cassidy added that the U.S. must lead in digital assets to support both the economy and national security.
What comes next
Both SB 16 and SB 19 still have a way to go before becoming law. The next step is review by the Senate Banking Committee, followed by debate in the full Delaware Senate. If passed, the State Bank Commissioner would be directed to issue implementing regulations within specified timeframes to ensure Delaware’s framework aligns with evolving federal standards.
By updating its laws to match federal guidance, Delaware aims to create clear rules for digital assets while keeping consumers protected. The reforms could make the state more attractive for crypto companies and provide a clearer framework for financial services.
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