Conference Participation

The Effect of Legal Paradigms on Social Development

Paper: Corporate Governance and Banking Modernization: An Exploration into the Considerations of Stablecoin and Other Digital Assets

Abstract: The Delaware Banking Modernization Act of 2026 focuses on digital assets as digital representation of value recorded on a cryptographically secured distributed ledger.  This legislation includes and defines virtual currency as not being money and is not denominated in money, but is still a medium of exchange, unit of account or store of value. Banks and trust companies can be created in the state of Delaware, and these Delaware banks and trust companies do not include national banks that are regulated by the federal Office of the Comptroller of the Currency. But the passage of these new laws would allow banks to be merged to result in a State Bank; or a National Bank may convert into a Delaware State Bank. If a National Bank or Federal Savings Bank is converted to be a Delaware state bank, all governance remains in the State Bank resulting from the conversion. The companion bill to The Delaware Banking Modernization Act of 2026 is the Delaware Payment Stablecoin Act.  This Modernization Act will allow for the conversion of national banks to state banks and will give the conversion the ability to operate branch banks, trust offices, in other states pursuant to the mergers or conversions of other state banks into a Delaware Trust Company. The companion act will allow for the inclusion of Stablecoin, which is pegged to current fiat money or other cryptocurrencies, and creates a licensing framework for payment of Stablecoin issuers and digital asset service providers. The modernization laws in tandem will create a licensing framework for payments in Stablecoin and digital assets service providers. 

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