Delaware lawmakers have unveiled a bid to become the next regulatory home for stablecoin issuers. Senate Bill 19, dubbed the Delaware Payment Stablecoins Act and introduced Tuesday, would create a full state-level framework for companies issuing payment stablecoins to Delaware residents — setting licensing, reserve, custody and disclosure rules aimed at bringing legal clarity and consumer protections.
The timing matters: dollar-pegged stablecoins now total roughly $305 billion in circulation globally, almost all tied to the U.S. dollar, and industry forecasts anticipate dramatic growth. Standard Chartered projects the sector could swell to more than $2 trillion by the end of 2028, a surge that would make regulatory welcome mats valuable for jurisdictions hoping to attract issuers.
SB19 is explicitly designed to dovetail with last July’s federal Guiding and Establishing National Innovation for U.S. Stablecoins Act (the GENIUS Act). That law created a national framework and allows state-chartered issuers to remain under state supervision if a state regime is judged “substantially similar” to federal standards. Delaware’s bill contains language saying the state has a “compelling interest in establishing a payment stablecoin regulatory framework that is competitive, protective of consumers, and consistent with the federal framework,” positioning it to take advantage of that pathway.
Key provisions in the bill include a 1:1 reserve requirement — reserves must consist of cash, bank deposits and short-term U.S. Treasurys — monthly public reserve reports, specified timeframes to satisfy redemptions, and custody and disclosure obligations. Issuers would need one of several licenses, such as a payment stablecoin issuer license or a digital asset service provider license. The bill also forbids paying interest on stablecoins unless federal law permits it, reflecting the ongoing policy debate over whether stablecoins should be treated more like bank deposits or simple payment instruments.
If enacted, the measure would reinforce Delaware’s long-standing role as a hub for corporate and financial law and could make the state an attractive option for stablecoin firms seeking state-level oversight rather than a federal charter. For issuers and investors, the bill signals how states are competing to capture a rapidly expanding slice of the digital-asset economy.
Read more AI-generated news on: undefined/news
