- Democratic lawmakers Senator Spiros Mantzavinos and Representative Bill Bush introduced two bills to update Delaware’s banking laws.
- The Senate Bill 16 will update the state’s banking code to define digital assets, whereas Senate Bill 19 will create a licensing framework for stablecoin issuers.
- The bills were introduced in Delaware, which is a major corporate hub in the US.
Democratic lawmakers in Delaware introduced two bills on Monday to revise the state’s banking laws for the first time in more than four decades, including a framework for stablecoin issuers such as Circle (CRCL) and Tether (USDT).
Following a press conference, Senator Spiros Mantzavinos and Representative William Bush filed two bills on Monday, the Senate Bill 16 and Senate Bill 19, which addressed digital assets, banking oversight, and payment stablecoins like USDC (USDC) and Tether (USDT). Stablecoins are digital tokens designed to maintain a fixed value relative to certain assets, such as the US dollar.
Senate Bill 16 updated Delaware’s banking code by defining digital assets and virtual currencies, and expanding the authority of the State Bank Commissioner over banks and trust companies. It also includes provisions related to corporate governance, interstate operations, and fiduciary services.
Senate Bill 19, also known as the Delaware Payment Stablecoin Act, created a “licensing framework for payment stablecoin issuers and digital asset service providers” operating for residents in the state. The bill outlined requirements for reserve standards, redemption timing, anti-money laundering obligations, and custody safeguards.
If adopted, SB 19 would establish “reserve requirements,” including reserve shortfall remediation cascades and mandatory redemption timing standards. The proposals were introduced in Delaware, where about 65% of Fortune 500 companies and more than 50% of publicly-traded US companies are incorporated.
Stablecoin Rules Discussions Continue
The proposal came as stablecoins continue to be used widely across digital asset markets and payments, with lawmakers working to define rules for their issuance and use.
Governor Matt Meyer said the bills aimed to expand access to financial services and lower barriers for companies operating in the sector. “We’re democratizing our financial services and lowering the barriers to entry,” he said.
First State To Legalize Blockchains For Corporate Use
Delaware became the first U.S. state to legally recognize blockchain for corporate records. The state amended its General Corporation Law in 2017 to allow companies to keep stock ledgers and other records on distributed ledger systems. This was a clear sign that blockchain could modernize corporate infrastructure. At the time, there were no licensing requirements or limits on crypto-related financial activity.
Delaware’s push to introduce stablecoin comes on the heels of U.S. lawmakers continuing to work on stablecoin regulation at the federal level, where key provisions are still being finalized.
On Stocktwits, the retail sentiment around USDC moved from ‘neutral’ to ‘bearish’ territory, as chatter levels around it remained ‘low’ over the past day.
On Stocktwits, the retail sentiment around Tether also moved from ‘neutral’ to ‘bearish’ as chatter levels around it remained ‘extremely low’ over the past day.
Read also: Stablecoin Yield Ban Proposal Returns – Here’s What It Means For Coinbase, Circle
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