Two bills in Delaware seek to establish regulations for stablecoins and update banking codes, potentially attracting crypto businesses back to the state.
Delaware lawmakers have introduced the Delaware Payment Stablecoin Act and the Delaware Banking Modernization Act as part of efforts to regulate cryptocurrencies and update financial regulations. The stablecoin bill, Senate Bill 19, proposes a licensing framework for stablecoin issuers operating in the state, drawing from federal models like the U.S. government's Stablecoins Act.
The framework includes specific guardrails such as requirements for reserve shortfall remediation, mandatory redemption timing standards, capital standards, and anti-money laundering obligations. If approved, the State Bank Commissioner would implement these rules within a set timeframe.
Key Provisions and Context
The Delaware Banking Modernization Act, Senate Bill 16, focuses on updating corporate governance for local banking institutions and incorporates definitions of digital assets to provide regulatory certainty. This bill addresses how digital assets intersect with traditional finance, marking the first significant banking code revision since 1981.
Governor Matt Meyer stated that these proposals aim to democratize financial services and lower barriers for residents to engage in digital transactions. Representative Bill Bush emphasized the need to align state laws with modern banking practices amid evolving transaction methods.
Delaware has a history of supporting blockchain and crypto, including the 2016 Delaware Blockchain Initiative launched by former Governor Jack Markell. However, some firms like Coinbase relocated to Texas last year due to dissatisfaction with the state's corporate dispute handling.
These bills could help Delaware attract businesses back by fostering an innovative banking ecosystem. Meanwhile, federal developments include Senator Bill Cassidy's proposal to update crypto tax rules and the SEC's review of rules that might shift oversight of certain crypto assets to the CFTC for greater market clarity.
