On March 24, 2026, Delaware lawmakers introduced Senate Bill 19 (SB19), the Delaware Payment Stablecoin Act, aiming to establish one of the first state-level regulatory frameworks for payment stablecoins. The bill closely follows the federal GENIUS Act passed in 2025, which created a two-tier system: large issuers under federal oversight, and smaller issuers allowed to operate under state rules deemed “substantially similar.” Delaware positions itself to meet that standard.
The bill was sponsored by Senator Spiros Mantzavinos, chair of the Senate Banking, Business, Insurance and Technology Committee, along with Representative Bill Bush. It has received support from the Governor's office and the University of Delaware, who call it both business-friendly and consumer-focused.
Three License Categories and Strict Reserve Requirements
SB19 would create three license types: Payment Stablecoin Issuer, Digital Asset Service Provider, and a Combined License. Oversight falls to the Delaware State Bank Commissioner, who will publish detailed regulations and conduct examinations.
At the heart of the bill is the 1:1 reserve requirement. Issuers must back all stablecoins with high-quality liquid assets such as U.S. dollars, cash equivalents, or short-term Treasury bonds. Mandatory corrective measures apply if reserves fall short, and segregation and custody protections are required.
Transparency and AML Compliance
Transparency rules are equally stringent. Issuers must publish monthly disclosures detailing reserve balances and outstanding tokens, accompanied by independent attestations from licensed accounting firms. This allows users to verify the token's backing.
On anti-money laundering (AML), issuers must comply with the Bank Secrecy Act (BSA), including Know-Your-Customer (KYC) procedures and transaction monitoring. The goal is to ensure stablecoin operations meet the same safeguards as traditional financial institutions.
No Interest on Stablecoins and Redemption Rights
SB19 explicitly prohibits interest or rewards for simply holding a stablecoin, drawing a clear line between payment instruments and deposit-like products. Capital requirements are set at a minimum of $5 million, escalating with operational risk, plus enough capital to cover at least one year of projected expenses.
Redemption rights are another key feature. Issuers must honor redemptions within two business days under normal conditions, with limited extensions for large withdrawals. Any fee changes require advance notice to prevent sudden surprises.
Current Status and Strategic Vision
SB19 has been referred to committee, with no vote yet. The full text is expected to be published soon, clarifying additional technical details and enforcement mechanisms.
Delaware’s strategy is well-known: act early, set the rules, and attract businesses. Lawmakers are betting that a clear regulatory framework aligned with federal law can lure stablecoin issuers just as previous policies attracted credit card giants decades ago—only this time with digital dollars instead of plastic.