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Delaware committee walks SB16 to refine banking modernization after votes fall short
Summary
A committee hearing on Senate Bill 16 (SS1) to update Delaware's Title 5 banking code covered digital-asset definitions, expanded state bank-commissioner authority and conversion pathways for out-of-state banks; a motion to release the substitute failed for lack of signatures and the bill was walked for later signatures.
Chair Bush opened a committee session to consider Senate Substitute 1 for Senate Bill 16, saying the measure would modernize Delaware's Title 5 banking code, add definitions for digital assets and virtual currency, expand the state bank commissioner's authority and ease corporate governance and conversion rules for banks and trust companies.
Lisa Collison, introduced to the committee as the State Bank Commissioner, told members the substitute defines digital assets and virtual currency, allows trust companies and banks to custody and hold certain digital assets on their books rather than treating them solely as money-transmission products, and gives the Office of the State Bank Commissioner authority to retain outside counsel and technical consultants when specialized expertise is required. "This modernization act allows institutions that are already chartered in other states to convert to Delaware rather than apply as de novo institutions," Collison said.
Committee members asked how the bill would change the commissioner's regulatory reach over crypto and other digital assets. Collison said Delaware currently supervises many of these activities under money-transmission law and that SB16 would broaden authorities to permit custody and other banking activities, while examiners would continue oversight functions. "It's important that Delaware stay in the forefront so that we remain the financial capital," she said.
Rory Murray, speaking for the Delaware Credit Union Association, urged the committee to preserve consumer protections and clear statutory standards as the state's laws are updated. "We think this bill does a good job of promoting modernization while preserving the importance of oversight," Murray said.
A motion to release SS1 for SB16 was made and seconded and the committee proceeded to a roll call vote. The chair announced there were not quite enough votes to release the substitute; the bill was walked so the committee could seek additional signatures before publishing and floor consideration.
Next steps: committee staff said they would attempt to gather the needed signatures and bring the substitute back when support reaches the required level.
