Delaware Updates Banking Laws for the Digital Finance Era

Delaware has enacted a sweeping package of banking modernization legislation aimed at updating the state’s financial regulatory framework for digital assets, money transmission and payment stablecoins. The trio of bills reinforces Delaware’s long-standing position as one of the nation’s leading financial services hubs while aligning state law with emerging federal standards.

Gov. Matt Meyer signed the three bills into law on July 7: the Delaware Banking Modernization Act of 2026 (SB 16), the Delaware Money Transmission and Virtual Currency Modernization Act (SB 18), and the Delaware Payment Stablecoins Act (SB 19). Together, the measures modernize the state’s banking code, establish a new licensing regime for money transmitters and virtual currency businesses, and create a regulatory framework for payment stablecoin issuers modeled on the federal GENIUS Act.

The legislation reflects Delaware’s effort to preserve its competitive position in financial services as banking increasingly incorporates digital assets and blockchain-based payment technologies. State Sen. Spiros Mantzavinos emphasized that objective during the bill-signing ceremony, per Delaware Public Media, saying, “The world’s changed, and when the world changes and financial services changes, Delaware is ready to still be there at the forefront and to maintain its leadership position.”

SB 16 represents the broadest revision of Delaware banking law in decades. According to Orrick’s InfoBytes blog, the measure updates the state banking code to expressly recognize digital assets and virtual currency. It also permits more flexible board governance for banks, authorizes the state bank commissioner to tailor chartering applications according to institutional risk, clarifies that banks’ authority over personal property includes digital assets, and streamlines the conversion or merger of out-of-state trust companies into Delaware-chartered trust companies.

Gov. Meyer said completing the overhaul early in his administration demonstrates the state’s commitment to attracting financial institutions and innovation. “To think we did it within the first 18 months of our administration is something that I think we’re really proud of and we’re going to be talking about for a while — and encouraging banks to grow and companies to come here to start new things,” Meyer said.

SB 18 replaces Delaware’s existing money transmission statute with a comprehensive regulatory framework establishing standardized definitions, updated licensing requirements, supervisory standards and new consumer protections.

The third measure, SB 19, creates a state regulatory regime for payment stablecoin issuers designed to closely mirror the federal GENIUS Act. Under the law, permitted issuers must maintain one-to-one reserves backed by specified high-quality assets, including U.S. currency, short-term Treasury bills, qualifying repurchase agreements and registered government money market funds.

In addition, stablecoin issuers must redeem outstanding payment stablecoins within two business days, maintain at least $5 million in capital for newly formed issuers, publish monthly reserve reports reviewed by registered public accounting firms, and comply with Bank Secrecy Act and anti-money laundering requirements. The law further establishes a voluntary registration pathway for digital asset service providers and provides a transition process for large state-qualified issuers exceeding $10 billion in outstanding issuance.

Supporters said the bipartisan package is intended to ensure Delaware remains a premier jurisdiction for financial services innovation. Referring to the legislation, Mantzavinos said, “This was a bipartisan piece of legislation … this is about making sure that Delaware remains first in this space.”

All three laws took effect immediately upon enactment, although major provisions of the money transmission and stablecoin laws, along with SB 16’s chartering provisions, will become operational either one year after enactment or earlier if implementing regulations are finalized by the state bank commissioner.