Delaware Proposes Banking Reforms to Support Digital Asset Custody and Stablecoins

New Delaware bills aim to regulate stablecoins and expand bank custody of digital assets under a unified state framework.

Delaware lawmakers have opened a new push to bring digital asset activity under clearer state rules. Two bipartisan bills would set standards for stablecoin issuers and give state-chartered banks a direct role in digital asset custody. More legislation tied to money transmission and virtual currency is also expected soon.

SB 19 Aims to Bring Stablecoin Issuers Under Structured State Oversight

Delaware introduced new bills on Monday as part of efforts to modernize its banking laws. Sen. Spiros Mantzavinos and Rep. Bill Bush filed the proposals, which are now under review by the Senate Banking Committee. According to the release, state officials said the goal is to bring digital assets under a clear and familiar regulatory framework.

One proposal, SB 19, is titled the Delaware Payment Stablecoin Act. It would create a licensing system for payment stablecoin issuers and digital asset service providers serving Delaware residents. Lawmakers said the bill borrows many definitions from the federal GENIUS Act and from a related proposal by the Office of the Comptroller of the Currency.

That approach is meant to keep Delaware close to the emerging federal model. State officials want Delaware-chartered firms to fit more easily within any national framework that takes shape. Lawmakers see that alignment as important for firms seeking state oversight while remaining compatible with federal standards.

SB 19 lays out a detailed set of operating rules for stablecoin activity. Those rules would cover reserve requirements and steps for fixing reserve shortfalls. Redemption timing standards would also apply, along with capital rules, anti-money laundering duties, and privacy protections.

Change-in-control notices, custody safeguards, and a path for converting from a federal charter to a state charter are also included. In addition, the State Bank Commissioner would be directed to issue regulations on a set timeline. Those rules would be updated to stay in step with changing federal standards.

State Officials Back SB 16 to Align Banking Laws With Digital Finance Trends

A second measure, SB 16, is titled the Delaware Banking Modernization Act of 2026. The bill would amend Title 5 of the Delaware Code by adding definitions for “digital asset” and “virtual currency.” It also expands the State Bank Commissioner’s authority in this area.

Just as important, SB 16 would clarify that digital assets count as personal property under Delaware fiduciary law. That change would allow state-chartered banks and trust companies to hold and manage digital assets in a fiduciary capacity. 

As a result, traditional banking institutions could take on a larger role in custody and administration services tied to crypto-related holdings.

Rep. Bill Bush said Delaware’s banking laws have been in place for more than 40 years without major revision. The rep said during that period, consumer banking and payment activity changed sharply. Bush argued that state law must keep pace while maintaining consumer protections.

Bank Commissioner Lisa Collison also pointed to the speed of change in financial services. New payment systems, technologies, and products are reshaping how people move money and access financial tools. In her view, state legal frameworks must adapt to match those shifts.

Delaware Targets Cross-State Coordination With Upcoming Proposal

According to the statement, Delaware is preparing another bill in the coming days to support its broader push into digital asset regulation. Called the Delaware Money Transmission & Virtual Currency Modernization Act, the upcoming bill is based on a model framework from the Conference of State Bank Supervisors.

The proposal would replace existing money transmission laws. Officials said the pitch aims to improve coordination between states on regulation, licensing, and supervision. In addition, it would standardize which activities require a license and update safety and soundness rules meant to protect customer funds.

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