DelawareSS 1 for SB 16153rd General Assembly (2024–2026)Senate

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

Sponsored By: Spiros Mantzavinos (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 6 benefits, 1 costs, 1 mixed.

Banks can manage customers’ digital assets

Digital assets now count as personal property that Delaware banks can manage as trustees or other fiduciaries. Digital assets include value recorded on a cryptographically secured shared ledger or similar technology, including virtual currency. Virtual currency serves as a means of exchange, unit of account, or store of value but is not money. The definition excludes rewards that cannot be exchanged for money or virtual currency, and game items usable only within a publisher’s platform.

More banks can manage Delaware trusts

Out-of-state banks and trust companies can serve as Delaware trustees, executors, guardians, or other fiduciaries. Their home-state law and governing documents must authorize the role, and their home state must grant like powers to Delaware institutions. Appointments must come through a Delaware-probated will or another covered document, such as a trust, mortgage, or agreement. National banks located in Delaware can also serve in specified fiduciary roles when federal law authorizes them.

Trust roles continue after bank changes

After covered mergers, trustee, executor, guardian, and other fiduciary appointments transfer automatically to the resulting bank or trust company. After covered conversions, these roles remain with the resulting institution. Related nominations, rights, and interests also continue without a court order or other action. Interested parties retain the right to ask a court whether the institution should continue or another fiduciary should serve.

Delaware trust companies can expand interstate

Delaware state trust companies can operate offices in other states through qualifying interstate mergers or conversions. The Delaware trust company must be the resulting institution. The Commissioner must give prior written consent. Activities at those offices must be allowed under both Delaware law and the law of the host state.

More flexibility for Delaware trust companies

The State Bank Commissioner can approve banks and trust companies with some or all legal powers, using risk-based applications. These powers can be limited by the company’s articles or a Commissioner order. This authority took effect at enactment, with implementation on the earlier of one year later or notice of final regulations. Limited-purpose trust companies no longer need to show that attracting public customers avoids substantial harm to existing Delaware institutions. The Commissioner also has broader authority to hire consultants, lawyers, and other professionals.

More paths into Delaware bank charters

The law expands interstate mergers, consolidations, and conversions, including national-bank conversions and out-of-state institutions becoming Delaware banks or trust companies. Transactions require Commissioner approval and compliance with applicable federal or home-state law, including protections for shareholders who object. Conversion applications must include a compliance certificate, an approved plan, and proposed governing documents; Delaware corporate or limited-liability-company procedures apply. A completed conversion application is deemed approved when the Commissioner takes no action within 30 days of receipt. Approval can be withheld without adequate successors for fiduciary roles when the resulting institution will not exercise trust powers.

Control rules for bank stock buyers

The law revises when buying 10% or more of a class of voting stock is presumed to give control. It covers Delaware-chartered banks and trust companies. The presumption applies when the class is registered under federal securities law. It also applies when no other person owns a greater proportion of that class immediately after the purchase.

Updated board and filing rules for banks

Covered Delaware banks, trust companies, and savings banks must have at least five directors. Their articles must state the board size or a method for setting it. Bylaws must state how many directors must attend for the board to conduct business. Organization filings must include officers’ business, post office, or mailing addresses; some covered filings also require home addresses.

Sponsors & Cosponsors

Sponsor

Spiros Mantzavinos
Democratic • Senate

Cosponsors

William Bush
Democratic • House
William J. Carson
Democratic • House
Daniel B. Short
Republican • House
Brian Pettyjohn
Republican • Senate
Jeffrey N. Spiegelman
Republican • House

Roll Call Votes

All Roll Calls

Yes: 56 • No: 0

House vote • 6/18/2026

Passed (2/3 required)

Yes: 36 • No: 0

Senate vote • 4/23/2026