- Delaware legislators introduced two bills to modernize state banking laws for the first time in over 40 years.
- One bill, the Delaware Payment Stablecoin Act, creates a licensing framework for stablecoin issuers like Circle and Tether.
- The proposals establish reserve requirements and redemption rules for stablecoins, aiming to shape oversight as federal regulations remain unresolved.
Democratic lawmakers in Delaware introduced landmark banking legislation on Monday, aiming to establish a legal framework for digital assets like stablecoins. Senator Spiros Mantzavinos and Representative William Bush filed two bills to update the state’s financial code, which governs a major corporate hub.
The first bill, Senate Bill 16, formally defines digital assets and expands the State Bank Commissioner’s authority. Consequently, it addresses corporate governance and fiduciary services for banks and trust companies operating with new technologies.
Meanwhile, Senate Bill 19 creates a specific licensing regime for payment stablecoin issuers. This framework outlines critical rules for reserve standards, anti-money laundering, and mandatory redemption timing.
Governor Matt Meyer stated the bills aim to expand financial access and lower barriers. “We’re democratizing our financial services and lowering the barriers to entry,” he said following the press conference.
Delaware has a history of crypto-friendly corporate law, having amended its General Corporation Law in 2017. This earlier move made it the first U.S. state to legally recognize blockchain for maintaining corporate records like stock ledgers.
The state’s push comes as federal stablecoin rules are still being finalized nationally. However, the legislation directly impacts major tokens, including USDC and Tether (USDT), which are designed to maintain a fixed value.
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