Delaware Senate Passes Banking Modernization Legislation
April 23, 2026/
With strong bipartisan support, two bills aimed at modernizing Delaware’s banking laws have passed the Senate. SB 16 updates state code by defining digital assets, expanding the State Bank Commissioner’s authority, and modernizing requirements for banks and trust companies, while also addressing interstate operations and fiduciary roles. A substitute bill adds a two-thirds vote requirement and clarifies implementation timing. Senate Bill 19, known as the Delaware Payment Stablecoin Act, creates a licensing framework for stablecoin issuers and digital asset service providers, adopting federal definitions and incorporating technical updates and new U.S. Treasury guidance issued April 8th.
Additional Information from Legislative Hall:
With strong bipartisan support, two bills designed to modernize Delaware’s banking laws passed the Senate Thursday afternoon.
Senate Bill 16 (S), also known as the Delaware Banking Modernization Act, is the first major revision to Title 5 of the Delaware Code since the passage of the Financial Center Development Act (FCDA) back in 1981.
Following the enactment of the FCDA, Delaware gained thousands of new jobs in the finance sector and grew roughly 20% in each of the first five years. In time, most of the nation’s major banking and credit card companies would call Delaware home, sustaining roughly 30,000 jobs at the peak of the financial sector boom in the late 1990s according to the Delaware Department of Labor at the time.
“We’re recommitting ourselves to Delaware’s legacy of financial sector excellence with the advancement of this banking modernization package,” said Sen. Spiros Mantzavinos, prime sponsor of Senate Bills 16, 18, and 19. “I’m proud to have worked in lockstep with banking and fintech leaders, State Bank Commissioner Lisa Collison and her office, and other members of Governor Meyer’s Administration to develop this slate of legislation that not only modernizes Delaware’s banking laws, but implements meaningful guardrails for consumers and companies alike in our ever-changing digital world.”
SB 16 updates Delaware Code by defining digital assets, expanding the State Bank Commissioner’s authority, modernizing corporate governance and organizational requirements for state-chartered banks and trust companies, facilitating interstate trust company operations and conversions, and expanding the authority of out-of-state financial institutions to act as fiduciaries in Delaware. A substitute bill was introduced to incorporate two main changes: highlighting the bill’s two-thirds vote requirement and clarifying the timeframe for implementation and enactment.
“It’s been more than four decades since we’ve made any meaningful updates to our state’s banking laws, and in that time, the way people bank and conduct transactions has changed significantly,” said Rep. Bill Bush, a prime sponsor of both bills and chair of the House Economic Development/Banking/Insurance & Commerce Committee. “We need to make sure our laws are keeping up with those changes. These bills help us do just that by modernizing our system while reinforcing strong protections for consumers.”
Senate Bill 19 (S), also known as the Delaware Payment Stablecoin Act, creates a licensing framework for payment stablecoin issuers and digital asset service providers operating with or on behalf of Delaware residents. Language in SB 19 adopts definitions drawn from the federal Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). SB 19 was substituted to incorporate technical changes and to absorb new guidance from the U.S. Treasury Department that was issued on April 8.
“Delaware has long been a leader in the financial services industry, but we can’t take that position for granted,” said Senate Minority Whip Brian Pettyjohn, a prime sponsor of both bills. “These updates reflect the realities of today’s economy, especially the growing role of digital assets and emerging financial technologies. By modernizing our laws and establishing clear, responsible frameworks, we’re reinforcing Delaware’s competitiveness while maintaining strong safeguards for consumers and investors.”
If adopted, SB 19 would establish reserve requirements including reserve shortfall remediation cascades, mandatory redemption timing standards, capital standards, anti-money laundering obligations, data privacy statutory floors, change-in-control notice procedures, custody safeguards, a federal-to-state charter conversion pathway, and strong preemption provisions. The State Bank Commissioner would be directed to promulgate implementing regulations within specified timeframes to align Delaware’s framework with evolving federal standards.
“This package will make needed changes to our banking laws, keeping pace with new technologies and the evolving way wealth is handled and transactions are made,” said Rep. Jeff Spiegelman, House Minority Whip and a sponsor of both bills. “SB 19, establishing a licensing framework for stablecoins, is a good example. Stablecoins are digital currencies that contrast with cryptocurrencies by pegging their value to traditional money, like the euro or dollar. If Delaware is going to maintain our position as a desirable venue for incorporations and banking, we need to ensure our financial laws and regulations reflect a 21st Century reality.”
A third banking modernization bill, Senate Bill 18, was released from the Senate Banking, Business, Insurance & Technology Committee on Wednesday and will be considered by the Senate later this spring. SB 18 is the “Delaware Money Transmission and Virtual Currency Modernization Act,” which updates Chapter 23 of Title 5 in the Delaware Code using model language from the Conference of State Bank Supervisors.
SB 16 and 19 will head to the House Economic Development/Banking/Insurance & Commerce Committee for further consideration.