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DelawareSB 16153rd General Assembly (2024–2026)SenateWALLET

AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO DELAWARE BANKS AND TRUST COMPANIES.

Sponsored By: Spiros Mantzavinos (Democratic)

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 6 benefits, 1 costs, 0 mixed.

Banks can manage clients’ digital assets

The law includes digital assets as personal property under the affected banking and trust rules. Covered Delaware banks, trust companies, and savings banks can hold and manage these assets for clients, trusts, and estates. Digital assets are values recorded on secure, shared digital ledgers. The virtual currency definition excludes certain nonwithdrawable merchant rewards and in-game publisher tokens. The law does not set asset values or service fees.

Trust services continue through bank changes

After covered bank or trust company mergers, trustee, executor, guardian, and related roles automatically transfer to the resulting institution. These roles also remain with the resulting institution after covered conversions, including national banks becoming Delaware state banks. After a merger, an interested person can ask a court to consider replacing the institution in those roles. When the resulting Delaware institution will not exercise trust powers, the Commissioner must ensure adequate arrangements for a successor.

Banks gain board and filing flexibility

Covered banks, trust companies, and savings banks can state their board size or a method for setting it in founding documents. Boards must still have at least five directors, and bylaws must state how many directors are needed for meetings. Some covered corporations can list an officer’s work, post-office, or mailing address instead of a home address. Others must still list the home address and can add another address.

Banks gain more flexible charter rules

The Commissioner can authorize covered banks and trust companies to use all or only some available powers. Founding documents or the Commissioner’s order can define those limits. The Commissioner can tailor charter application requirements to the risks of proposed activities. Limited-purpose trust applicants no longer need to show that attracting Delaware customers will avoid substantially harming existing Delaware institutions.

Out-of-state institutions gain Delaware charter options

Out-of-state trust companies can merge with Delaware state trust companies to form a Delaware state trust company, with written Commissioner approval. Out-of-state state banks can convert to Delaware state banks; out-of-state trust companies can convert to Delaware limited-purpose trust companies. Conversion applications must include corporate approval, an approved conversion plan, and proposed founding documents where required. A completed conversion application is deemed approved if the Commissioner takes no action within 30 days of receiving it. Institutions must follow applicable home-state rules and Delaware corporate or limited liability company conversion procedures.

Trust providers gain cross-state service options

Delaware trust companies resulting from interstate mergers or conversions can operate out-of-state offices with the Commissioner’s prior written approval. Activities at those offices must be allowed by both Delaware and the host state. Out-of-state banks and trust companies can serve as trustees, executors, guardians, or other fiduciaries in Delaware. Their home-state law and founding documents must authorize those roles. Their home state must also grant similar powers to Delaware institutions.

Voting stakes trigger bank control rules

Control of a Delaware-chartered bank or trust company includes power to direct management or policies, or vote at least 25% of any voting share class. Buying at least 10% of a voting share class creates a presumption of control in either of two cases. One is when any voting share class is registered under Section 12 of federal securities law. The other is when no person will own a larger portion of the acquired class immediately after the transaction.

Sponsors & Cosponsors

Sponsor

  • Spiros Mantzavinos

    Democratic • Senate

Cosponsors

  • William Bush

    Democratic • House

  • Brian Pettyjohn

    Republican • Senate

  • Cyndie Romer

    Democratic • House

  • Jeffrey N. Spiegelman

    Republican • House

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. SS 1 for SB 16 - Signed by Governor

    7/6/2026Governor

  2. SS 1 for SB 16 - Passed By House. Votes: 36 YES 5 ABSENT

    6/18/2026House

  3. SS 1 for SB 16 - Reported Out of Committee (Appropriations) in House with 6 On Its Merits

    6/16/2026House

  4. SS 1 for SB 16 - Assigned to Appropriations Committee in House

    5/5/2026House

  5. SS 1 for SB 16 - Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 9 On Its Merits

    5/5/2026House

  6. SS 1 for SB 16 - Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

    4/30/2026House

  7. SS 1 for SB 16 - Passed By Senate. Votes: 20 YES 1 NOT VOTING

    4/23/2026Senate

  8. SS 1 for SB 16 - - Passed By Senate. Votes: 18 YES 3 ABSENT

    4/23/2026Senate

  9. Substituted in Senate by SS 1 for SB 16

    4/23/2026Senate

  10. SS 1 for SB 16 - Reported Out of Committee (Finance) in Senate with 1 Favorable, 3 On Its Merits

    4/22/2026Senate

  11. Substituted in Senate by SS 1 for SB 16

    4/21/2026Senate

  12. Assigned to Finance Committee in Senate

    4/15/2026Senate

  13. Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 5 Favorable, 1 On Its Merits

    4/15/2026Senate

  14. Amendment SA 1 to SB 16 - Introduced and Placed With Bill

    4/13/2026Senate

  15. Introduced and Assigned to Banking, Business, Insurance & Technology Committee in Senate

    3/23/2026Senate

Bill Text

  • Current

    3/23/2026

    HTML

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