Delaware stablecoin legislation tightens licensing, 1:1 reserves

Delaware stablecoin legislation has been introduced to tighten state licensing for stablecoin issuers under the Delaware Banking Commissioner. The bill focuses on stronger oversight, including one-to-one reserves, ongoing capital adequacy compliance, and regular external audits. The proposal (Senate Bill 19) is designed to align with future national rules by adopting key definitions from the proposed federal GENIUS Act, aiming to reduce compliance conflicts. It also responds to last year’s industry exodus, when firms such as Coinbase relocated to Texas amid regulatory uncertainty. For the market, the Delaware stablecoin legislation is expected to favor larger, more regulated providers such as Circle and Paxos, while smaller, potentially under-collateralized projects may face tighter pressure. Supporters frame the bill as a “passport” for legitimacy ahead of broader federal crypto policy, while critics warn state-by-state fragmentation could still raise costs. Timing: if passed, the law would take effect January 1, 2026, with the Commissioner given 180 days to issue implementing regulations and applications likely starting in Q3 2026.