Delaware unveils SB 19 mandating 1:1 reserves, licensing for stablecoins
Delaware filed SB 19 to license payment stablecoin issuers under state banking oversight and seek federal certification under the GENIUS Act. The bill mandates 1:1 high‑quality liquid asset reserves and targets the sub‑$10B issuance track.
What SB 19 does
- Puts issuers under the Office of the State Bank Commissioner. Source: Delaware Legislature
- Adopts GENIUS Act definitions for payment stablecoins and requires full, 1:1 reserves in Treasuries, central bank reserves, or similar HQLA. Sources: Delaware Legislature, BSCNews tweet
- Applies to issuers below $10B consolidated outstanding issuance; above $10B must move to federal oversight within 360 days or halt new issuance. Source: Coinspeaker
Why the timing matters
- GENIUS Act requires states to finalize implementation rules by July 18, 2026. SB 19 is pitched as Delaware’s certification vehicle on that clock. Source: Coinspeaker
Certification mechanics
- The Stablecoin Certification Review Committee (Treasury, Fed, FDIC) must judge a state regime “substantially similar” within 30 days of submission for sub‑$10B issuers to rely on it. Source: Coinspeaker
- Certification review starts only after SB 19 is enacted and rules are finalized. Source: Coinspeaker
Issuer impact
- Compliance mirrors New York’s NYDFS model: ongoing reserve attestations, audits, and prior approval for material changes. Expect dual‑state complexity for issuers running New York and Delaware vehicles. Source: Coinspeaker
- Differentiators may be exam cadence, fees, and regulator responsiveness; reserve asset flexibility is limited by federal standards. Source: Coinspeaker
Federal backdrop
- Federal guidance defining “substantial similarity” is expected by January 18, 2026, shaping how closely states must track federal rules. Source: Coinspeaker
- SEC has begun applying GENIUS Act definitions to digital assets, referencing Bitcoin among others. Source: The Rage tweet
Who’s pushing SB 19
- Sponsors include Sen. Spiros Mantzavinos and Rep. Bill Bush; positioned as a bipartisan, state‑level “gold standard” bid. Source: Conor Kenny tweet
Next steps
- Enact SB 19, finalize the Commissioner’s rules, submit for SCRC review, then a 30‑day decision window starts. Source: Coinspeaker
