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State bank commissioner says SB18 would modernize Delaware money‑transmission law
Summary
State Bank Commissioner Lisa Collinson told the Senate Banking committee that Senate Bill 18 would repeal and replace Chapter 23 of Title 5 with a CSBS‑based Money Transmission and Virtual Currency Modernization Act to strengthen consumer protections, standardize licensing and enable multistate supervision.
State Bank Commissioner Lisa Collinson told the Senate Banking, Business, Insurance and Technology Committee that Senate Bill 18 would replace Delaware’s outdated money‑transmitter statute with a single, modern framework intended to improve security for customer funds and coordinate regulation across states.
"The Delaware Money Transmission and Virtual Currency Modernization Act is based off of the Conference of State Bank Supervisors' Money Transmission Modernization Act," Collinson said, adding the bill would set consistent net‑worth, capital, surety bond and liquidity requirements and enable joint multistate examinations. "It provides increased security for customer funds through modernization, consistent and robust safety and soundness requirements."
The sponsor framed SB18 as the third bill in a package of banking‑modernization measures and said the changes are primarily consumer‑protection and harmonization efforts that would allow Delaware regulators to coordinate licensing and share supervisory information. Collinson told the panel the law expands definitions to cover modern payment methods, including virtual currency, and enables multistate licensing through an existing multistate platform the office uses.
Committee members did not take a committee vote during the hearing. The chair moved the meeting to public comment for SB18 but no registered in‑person or virtual witnesses spoke on the measure during this session.
Next steps: the committee will consider SB18 and related modernization bills at a future meeting; no formal action or vote was recorded at this hearing.
