Delaware moved decisively into the stablecoin regulatory debate with the introduction of Senate Bill 19, the Delaware Payment Stablecoin Act. The proposal updates state banking law to place stablecoin issuers and digital-asset service providers under a banking-style licensing framework.
The bill was introduced as Delaware aligned its approach with the federal GENIUS Act, which became law in July 2025. The result is a more formal supervisory path for stablecoin firms that want an onshore base, but one that comes with higher prudential and operational obligations.
A Banking-Style Framework for Stablecoin Issuers
Senate Bill 19 creates a licensing route for payment-stablecoin issuers and is aimed in particular at smaller firms, while also referencing federal comparability for issuers below the $10 billion threshold. The legislation makes clear that Delaware wants stablecoin activity brought into a regulated structure closer to traditional banking oversight.
One of the core pillars of the bill is reserve quality. Issuers would be required to maintain 1:1 backing with high-quality liquid assets such as U.S. dollars, cash equivalents or short-term U.S. Treasurys. That requirement is designed to tie payment stablecoins more directly to liquid, lower-risk reserve instruments.
The bill also places strong emphasis on transparency. Monthly independent audits and public disclosure of reserve composition would become mandatory, with attestations required from registered accounting firms. That creates a recurring verification burden for issuers, but it also gives users and counterparties a clearer view of reserve integrity.
Redemption mechanics are another major part of the framework. Under the bill, issuers would generally have to meet redemption requests within two business days, although that window could extend to seven days for redemptions exceeding 10% of outstanding issuance in a 24-hour period. The text also requires seven days’ notice before any fee changes take effect.
Higher Compliance Costs in Exchange for Regulatory Clarity
Delaware is also importing anti-money-laundering and supervisory standards directly into the model. Issuers would be expected to follow AML and KYC procedures consistent with Bank Secrecy Act requirements, while the Office of the Banking Commissioner would gain broader authority over supervision.
Capital requirements in the bill are substantial enough to shape who can realistically enter the market. New issuers would need at least $5 million in minimum capital and would also have to maintain capital equal to at least 12 months of projected operating expenses. Regulators would retain the authority to demand additional capital depending on the level of perceived risk.
That combination of audits, capital thresholds and supervisory discretion changes the economics of market entry. The framework offers clearer legal footing for firms that can meet the standards, but it also raises fixed costs in ways that are likely to favor larger or better-capitalized participants.
Delaware is presenting the measure as complementary to the federal regime rather than in conflict with it. By tying its rules to a “substantially similar” standard under the GENIUS Act, the state is building a tiered compliance model for issuers that want to operate under state supervision while remaining aligned with federal expectations.
The next important stage will be passage and implementation. How the Banking Commissioner writes the follow-on rules will determine the real cost, supervisory intensity and competitive impact of the framework for stablecoin issuers, exchanges and treasury operators.
