The federal push to shift crypto oversight away from the Securities and Exchange Commission could reshape the way 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 handled outside of securities law, and the Commodities Futures Trading Commission may take the lead. Days later, Delaware made its own move.
A Two-Bill Package Targeting Financials and Digital Assets
On Monday, Democratic Senator Spiros Mantzavinos and Representative Bill Bush introduced two bills – Senate Bill 16 and Senate Bill 19 – designed to bring Delaware’s banking laws up to date.
Source: Delaware Senate Democrats
The Banking Modernization Act focuses on traditional finance, updating corporate governance rules and introducing definitions of digital assets to give the sector a clear legal basis.
The Payment Stablecoin Act is a step forward, creating a licensing system for stablecoin issuers and digital asset service providers operating in the state.
Both bills borrow language from the GENIUS Act, the stablecoin bill working its way through Congress. The state regulations reveal the necessary safeguards: set bankruptcy laws, set customer redemption periods, capital requirements, and anti-money laundering obligations.
Once signed into law, the Federal Reserve Bank Commissioner will be responsible for implementing the laws.
Governor Matt Meyer supported 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.
Total crypto market cap currently at $2.4 trillion. Chart: TradingView
A Situation That Has Been Here Before
Delaware has had 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.
Increasing regulatory changes followed over the years. But the state has hit a snag recently with several tech and crypto companies pulling out.
Image: Worldcoin
Coinbase, one of the world’s largest crypto exchanges, has been reorganized in Texas after publicly criticizing the Delaware Court of Chancery, which handles corporate disputes.
The new bills are widely seen as an attempt to restore that type of business. “Our administration is focused on attracting future jobs,” said Meyer.
Stablecoins: More Rules Are Coming
Neither bill is close to becoming law. Both must clear the Senate Banking Committee before reaching the full floor of the Delaware Senate for a vote. A third bill is also on the way.
Officials said lawmakers plan to introduce the Delaware Money Transmission and Virtual Currency Modernization Act in the coming days.
Featured image from Live Love Delaware, chart from TradingView
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