Delaware Proposes Stablecoin Licensing and Crypto Custody Laws

• Delaware proposes stablecoin bill requiring licenses, 1:1 reserves, audits, and strict KYC and AML compliance.
• Lawmakers also seek to allow banks to manage crypto assets in fiduciary roles under updated banking laws.
• Bills aim to provide clarity amid federal uncertainty and position Delaware in the digital asset sector.

Delaware lawmakers introduced two crypto bills on Monday to regulate stablecoins and allow banks to manage digital assets in a fiduciary role. Governor Matt Meyer and state legislators announced the proposals at the University of Delaware. The plan aims to modernize banking laws and position the state within the growing digital asset sector.

The proposed Delaware Payment Stablecoin Act, also known as Senate Bill 19, outlines a licensing system for issuers. Under the bill, companies must obtain approval from the state banking commissioner. Additionally, all stablecoins must maintain full 1:1 reserve backing.

Notably, the legislation requires monthly audits to verify reserves. It also mandates strict Know Your Customer and anti-money laundering compliance. According to lawmakers, these rules align with broader federal standards, including the GENIUS Act.

At the same time, the bill builds on efforts seen in other states. Delaware now joins Florida in advancing state-level stablecoin regulation.

Alongside stablecoin rules, lawmakers proposed allowing banks to manage crypto assets in a fiduciary capacity. This provision expands the role of traditional financial institutions in digital asset services.

Governor Matt Meyer said the reforms respond to changes in payment systems. He noted that digital transactions continue to replace physical payment methods. Meanwhile, Karyn Polak of the Delaware Bankers Association supported the initiative during the announcement.

Her remarks stood out, as banks have opposed similar proposals at the federal level. However, Delaware’s approach appears to avoid direct conflict between banks and crypto firms.

The state proposals arrive as federal debates over crypto regulation continue. Congress previously passed the GENIUS Act, which restricts stablecoin issuers from offering interest-like rewards. President Donald Trump signed the law last year.

At the same time, discussions around the CLARITY Act remain unresolved in the Senate. Meanwhile, companies such as Coinbase and Circle face market pressure tied to regulatory uncertainty.

Delaware lawmakers said the new bills aim to provide clarity at the state level. The legislation must pass committee review before advancing through the state legislature.