Delaware lawmakers introduced Senate Bill 19 on Monday afternoon, aiming to establish one of the nation's first state-level regulatory regimes for payment stablecoins consistent with federal law. The bill was sponsored by Sen. Spiros Mantzavinos, chair of the Senate Banking Committee, and Rep. Bill Bush.
The proposed Delaware Payment Stablecoin Act, also called the Delaware Banking Modernization Act, creates a licensing and oversight structure for stablecoin issuers and digital asset service providers operating with state residents. The move is part of a broader push to modernize banking and money transmission laws.
State officials including the governor's office and the University of Delaware have signaled support, framing the bill as both pro-business and consumer-focused. The legislation closely mirrors the 2025 federal GENIUS Act, which allows smaller issuers to operate under state frameworks deemed "substantially similar."
Three License Tiers and Strict Reserve Rules
SB19 would create three license categories: payment stablecoin issuer, digital asset service provider, and a combined license. Oversight falls to the Delaware State Bank Commissioner, who will issue detailed regulations and conduct examinations.
The core requirement is 1:1 reserves backed by high-quality liquid assets such as U.S. dollars, cash equivalents, or short-term Treasurys. Mandatory remediation steps kick in if reserves fall short. Segregation and custody protections are also required.
Transparency rules are tight: issuers must publish monthly disclosures detailing reserves and outstanding issuance, with independent attestations from registered accounting firms. This gives users a direct view into whether a token is actually backed as advertised.
AML, No Yield, and Capital Floor
The bill enforces Bank Secrecy Act standards, including KYC and transaction monitoring. Stablecoin firms must operate with safeguards comparable to traditional banks.
A notable provision explicitly bars issuers from offering interest or rewards for holding stablecoins, drawing a clear line between payment instruments and deposit-like products.
Capital requirements start at $5 million and scale with operational risk. Issuers must also maintain enough capital to cover at least one year of projected expenses. Redemption rights require issuers to honor requests within two business days under normal conditions, with limited extensions for large withdrawals. Fee changes require advance notice.
SB19 has been referred to committee with no vote scheduled. Full statutory language is expected to be published shortly, which may clarify additional technical details and enforcement mechanisms. Delaware is betting that a clear, federally aligned framework can attract stablecoin issuers the way earlier policies pulled in credit card giants decades ago — this time with digital dollars instead of plastic.