A federal push to shift crypto oversight away from the Securities and Exchange Commission may be reshaping how states like Delaware think about stablecoins and digital asset regulation in general.
Last Friday, the SEC sent two proposed rules to the White House that could lead to most crypto assets being treated outside of securities law, with the Commodities Futures Trading Commission potentially taking the lead. Days later, Delaware made its own move.
A Two-Bill Package Targeting Finance And Digital Assets
On Monday, Democratic Sen. Spiros Mantzavinos and Representative Bill Bush filed a pair of bills — Senate Bill 16 and Senate Bill 19 — designed to bring Delaware’s banking laws into the modern era.
The Banking Modernization Act focuses mainly on traditional finance, updating corporate governance rules and introducing definitions for digital assets to give the sector clearer legal footing.
The Payment Stablecoin Act goes further, creating a licensing system for stablecoin issuers and digital asset service providers operating in the state.
Both bills borrow language from the federal GENIUS Act, a stablecoin bill working its way through Congress. The state measure outlines required safeguards: reserve shortfall rules, set timelines for customer redemptions, capital requirements, and anti-money laundering obligations.
If signed into law, the State Bank Commissioner would be responsible for putting the rules into effect.
Governor Matt Meyer backed the effort. “This legislative package sends a signal loud and clear,” he said, adding that Delaware aims to make it easier for residents to send, receive, and save money using only an internet connection.
A State That Has Been Here Before
Delaware has courted stablecoins and blockchain companies for years. Back in 2016, then-Governor Jack Markell launched the Delaware Blockchain Initiative to attract firms working in the space.
Incremental regulatory changes followed over the years. But the state hit a rough patch recently when several technology and crypto companies pulled out.
Coinbase, one of the largest crypto exchanges in the world, reincorporated in Texas after publicly criticizing Delaware’s Chancery Court, which handles corporate disputes.
The new bills are widely seen as an attempt to win back that kind of business. “Our administration is focused on attracting the jobs of the future,” Meyer said.
Stablecoins: More Legislation Still Coming
Neither bill is close to becoming law. Both must clear the Senate Banking Committee before reaching the full Delaware Senate floor for a vote. A third bill is also on the way.
Officials said lawmakers plan to file the Delaware Money Transmission and Virtual Currency Modernization Act in the coming days.
Featured image from Live Love Delaware, chart from TradingView
