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On July 6, 2026, Delaware Governor Matt Meyer signed three bills modernizing the state’s regulation of banks, money transmitters, virtual currency businesses, and payment stablecoin issuers. Senate Substitute 1 for Senate Bill 16, Senate Bill 18, and Senate Substitute 2 for Senate Bill 19 took effect upon signing, although several provisions require implementing regulations.
The legislation creates three complementary regulatory frameworks. Specifically, the package:
- Modernizes Delaware’s banking laws. SB 16 expressly recognizes digital assets as personal property that state-chartered banks may hold in a fiduciary capacity. It also permits more flexible board structures and risk-based charter applications and establishes procedures for out-of-state banks and trust companies to convert into Delaware-chartered institutions.
- Expands money transmission oversight. SB 18 replaces Delaware’s existing money transmission statute with a framework expressly covering virtual currency activity. The law establishes licensing, net worth, surety bond, permissible investment, disclosure, receipt, and refund requirements and permits coordinated licensing and supervision through NMLS.
- Regulates payment stablecoin issuers. SB 19 establishes a state licensing framework intended to align with the federal GENIUS Act. Issuers generally must maintain eligible reserves at least equal to outstanding stablecoins, redeem stablecoins within two business days, comply with capital and BSA/AML requirements, and publish monthly reserve reports examined by an independent accounting firm.
- Protects customer assets. Virtual currency held by money transmitters constitutes a proportional property interest protected from creditor claims, while payment stablecoin holders receive priority over other claims against an insolvent issuer.
Putting It Into Practice: Delaware joins a growing number of states updating their money transmission laws to address virtual currency, strengthen financial requirements, and modernize licensing and supervision, while also establishing a separate framework for payment stablecoins (previously discussed here and here). Money transmitters, virtual currency businesses, stablecoin issuers, and financial institutions should evaluate whether the new laws affect their licensing status, net worth and surety bond requirements, permissible investments, customer disclosures, custody practices, reserves, and compliance programs.
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