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Committee releases SB19 substitute creating Delaware stablecoin licensing framework
Summary
Senate Substitute 2 for SB19 would create a licensing regime for payment-stablecoin issuers and digital-asset service providers, set reserve and redemption standards, AML rules, custody safeguards and a federal-to-state charter pathway; the committee voted to release the substitute to the House floor.
Chair Bush presented Senate Substitute 2 for Senate Bill 19, saying the measure would create a comprehensive licensing framework for payment-stablecoin issuers and digital-asset service providers operating with or on behalf of Delaware residents. The substitute, as described at the hearing, sets reserve requirements (and remediation cascades for reserve shortfalls), redemption timing standards, capital requirements, anti-money-laundering obligations, custody safeguards, notice procedures for changes of control, and a federal-to-state charter conversion pathway.
State Bank Commissioner Lisa Collison told the committee the office would use consultant support and training funded by initial implementation funds in the fiscal note to develop regulations, applications and examiner guidance. The fiscal note included an estimated $400,000 per year to add three full-time staff positions for licensing and examinations; Collison said the office is ASF-funded and plans to set fees to cover ongoing costs.
Representative Wilson Anton and other members asked for details on market size, oversight capacity and whether the proposed staffing would be sufficient. Collison said the fiscal note would allow the office to bring in consultants to create regulatory frameworks and to train existing personnel; if the sector grows, additional staffing requests would follow.
Members also pressed on AML protections. Collison said licensed entities would be required to maintain anti-money-laundering programs consistent with federal law and that examiners would monitor compliance. Supporters in the public record, including Rory Murray of the Delaware Credit Union Association, told the committee that statutory clarity and oversight would protect consumers and provide legal certainty for firms.
After questions and public comment, the committee moved, seconded and took a roll call; the chair announced that SS2 for SB19 had received sufficient votes to be released from committee for further action.
