Delaware Wants to be the Regulatory Home for Stablecoins

According to a recent analysis by Jones Day, the proposed legislation—Senate Bill 19, the Delaware Payment Stablecoins Act, and Senate Bill 16, the Delaware Banking Modernization Act of 2026—would establish a licensing and supervisory regime designed to align closely with federal standards under the GENIUS Act.

Signed by President Trump in 2025, the GENIUS Act created a pathway for states to develop their own stablecoin regulatory systems. If those regimes are certified as “substantially similar” to federal rules, state-licensed issuers can operate nationwide without a federal charter. Delaware’s proposed legislation is explicitly structured to meet that threshold, with the state planning to seek certification from the federal Stablecoin Certification Review Committee once implementing regulations are finalized.

This federal-state dynamic is central to Delaware’s strategy. By mirroring key elements of anticipated federal rules while preserving some flexibility, the state is attempting to offer issuers a credible alternative to direct federal supervision. The approach echoes Delaware’s traditional role as a business-friendly jurisdiction, where a predictable legal framework and specialized courts have long made it the preferred state of incorporation for U.S. companies.

At the core of the proposal is SB19’s licensing regime, which would require stablecoin issuers and digital asset service providers dealing with Delaware residents to obtain state authorization. The bill establishes multiple license categories and imposes requirements broadly consistent with federal expectations, including anti-money laundering compliance, consumer disclosures, and prudential safeguards.

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Related: Chainalysis Sees Stablecoins Becoming Core Global Payment Infrastructure

Among the most significant provisions are strict reserve requirements mandating that all outstanding stablecoins be backed 1:1 by high-quality liquid assets such as U.S. currency or short-term Treasuries. Issuers would also be required to honor redemption requests within two business days and provide regular, independently examined disclosures on reserve composition and outstanding liabilities.

The legislation further incorporates robust custody and bankruptcy protections, requiring that reserve assets be segregated and shielded from claims in insolvency proceedings. At the same time, issuers would be treated as financial institutions under the Bank Secrecy Act, subjecting them to comprehensive anti-money laundering and sanctions compliance obligations.

Notably, SB19 includes a “federal parity” provision that would automatically allow Delaware-licensed issuers to offer yield on stablecoins if federal law evolves to permit it—an area of ongoing policy debate in Washington.  This feature underscores the state’s effort to remain adaptable as federal standards develop.

The framework also introduces a pathway for federally supervised nonbank issuers to convert to Delaware oversight under certain conditions, including limits on outstanding issuance. However, larger issuers exceeding $10 billion in circulation for a sustained period would still face pressure to transition back to federal supervision, reinforcing a hybrid regulatory model.

Complementing SB19, SB16 updates Delaware’s banking code to formally define “digital assets” and “virtual currency,” while clarifying that state-chartered banks may custody and administer such assets. It also explicitly recognizes digital assets as personal property for fiduciary purposes, further integrating them into the state’s legal infrastructure.

Taken together, the measures represent a calculated bid by Delaware to extend its dominance in corporate law into the digital asset era. By aligning closely with the GENIUS Act while offering a state-based alternative to federal charters, Delaware is positioning itself as a regulatory gateway for stablecoin issuers seeking nationwide reach.