On May 1, 2024, Delaware introduced two bills aimed at establishing clear rules for the cryptocurrency market in the state. The main proposal assigns the Delaware Banking Commissioner the responsibility of granting licenses to companies operating with digital assets, including stablecoins.
The new legislation allows authorized companies to hold deposits in stablecoins, which are digital currencies backed by the US dollar and structured to offer greater stability to investors. However, the state text prohibits the payment of interest on these assets while the GENIUS Act is in force, a federal rule enacted in 2023 by Donald Trump that limits earnings on stablecoins.
However, if there is a change in federal legislation allowing the payment of interest on these digital currencies, Delaware will automatically adjust its rules to comply with the new guidelines. Thus, the state seeks to avoid regulatory conflicts between traditional financial institutions and cryptocurrency companies, a topic widely debated in recent years.
Delaware is thus trying to position itself as a competitive hub for the emerging crypto asset and fintech market. While states like Wyoming have already issued public stablecoins since early 2024, the local government wants to update the legal framework to encourage investment and innovation in virtual payments.
Senator Spiros Mantzavinos, one of the project’s creators, began discussions after the acquisition of Discover in 2024, which accelerated public and institutional interest in digital financial solutions. Governor Matt Meyer highlighted that the legislation is equivalent to a change as significant as the financial reforms of the 1980s, emphasizing its relevance to the regional economy.
As of May 7, 2024, there were no official records of lobbying related to stablecoin regulation in Delaware. The absence of external pressure facilitated dialogue between the state government and entities such as the Delaware Bankers Association, which supports the changes as a necessary adaptation to the current technological and financial scenario.
Furthermore, some market players, such as Coinbase – an investor in Circle –, are considering the possibility of changing their legal headquarters, putting Delaware in the spotlight in the debate over the regulatory environment for crypto assets. Meanwhile, the FEDERAL Communications Commission (FCC) has not yet issued a formal position on the state legislation.
The federal GENIUS Act, approved by Donald Trump in 2023, prohibits the payment of returns on stablecoins, although there is a proposal called the CLARITY Act that could authorize these payments in the future. The latter faces strong resistance from traditional banks, which view the advancement of stablecoins with caution. In a post on the social network Truth Social, Trump criticized banks for blocking the progress of the crypto industry in 2024.
The bills in Delaware were developed in Governor Matt Meyer’s office with the support of Senator Mantzavinos, who emphasized goals such as protection for families, job creation, and the democratization of financial access. Thus, the state bets on updating its regulations to keep pace with the evolution of virtual payment technologies and digital assets.
The conclusion of approval still depends on further analysis in the state legislature, but the movement already signals a clear attempt by Delaware to take a leading role in the fintech and digital currency sector. Additionally, other jurisdictions are under observation, since local advances may influence regulations in other regions of the country.
