(a) The Commissioner may examine each permitted payment stablecoin issuer licensed under this chapter as frequently as the Commissioner deems necessary or expedient.

(b) For issuers with an outstanding issuance value exceeding $1,000,000,000, the Commissioner shall conduct a full examination at least annually.

(c) In conducting examinations under this section, the Commissioner has access to every part of the issuer’s offices and place of business, and to the issuer’s assets, records, books, data systems, and personnel.

(d) The Commissioner may conduct joint or coordinated examinations with the primary federal payment stablecoin regulator or the financial regulatory authority of another state.

(e) An examined issuer shall pay the reasonable costs of any examination conducted under this section, as determined by the Commissioner by regulation.

85 Del. Laws, c. 339, § 1; 

(a) If the Commissioner has reason to believe that a person has violated or is about to violate any provision of this chapter or any regulation or order of the Commissioner, the Commissioner may do 1 or more of the following:

(1) Issue a cease and desist order.

(2) Suspend or revoke a license issued under this chapter.

(3) Assess civil penalties for the following amounts:

a. For violations that are not knowing or reckless, not more than $100,000 per violation, per day of a continuing violation.

b. For violations that are knowing or reckless, not more than $500,000 per violation, per day of a continuing violation.

c. For violations that are part of a pattern of misconduct or that result in material harm to payment stablecoin holders, not more than $1,000,000 per violation, per day of a continuing violation.

(4) Seek injunctive relief in the Court of Chancery of this State.

(b) In determining the amount of any civil penalty under paragraph (a)(3) of this section, the Commissioner shall consider the following:

(1) The gravity of the violation.

(2) The history of previous violations.

(3) The good faith of the person charged.

(4) The financial resources and good character of the person.

(5) Any unjust enrichment to the person from the violation.

(6) Any harm to payment stablecoin holders or the public.

(7) Any other factors as justice may require.

(c) Before taking action under paragraph (a)(2) or (a)(3) of this section, the Commissioner shall provide the affected person with notice and an opportunity to be heard in accordance with the Administrative Procedures Act, chapter 101 of Title 29.

(d) The Commissioner may take emergency action under paragraph (a)(1) of this section without prior notice and hearing if the Commissioner determines that immediate action is necessary to prevent imminent harm to payment stablecoin holders or the public. Emergency actions are subject to a prompt post-deprivation hearing.

(e) The Commissioner may share examination reports, investigation files, and other supervisory information with the following:

(1) The primary federal payment stablecoin regulator of an issuer.

(2) Financial regulatory authorities of other states.

(3) Federal law-enforcement agencies, subject to appropriate confidentiality agreements.

85 Del. Laws, c. 339, § 1; 

(a) It is unlawful to knowingly issue a payment stablecoin without a license required by this chapter. Violation of this subsection is a class F felony.

(b) It is unlawful to knowingly make a material misrepresentation in an application for a license under this chapter. Violation of this subsection is a class F felony.

(c) It is unlawful to knowingly submit a false certification of any report or disclosure required under this chapter. Violation of this subsection is a class F felony.

85 Del. Laws, c. 339, § 1; 

(a) A violation of this chapter by a permitted payment stablecoin issuer shall constitute a violation of the Delaware Consumer Fraud Act under subchapter II, Chapter 25 of Title 6, subject to the enforcement authority of the Attorney General under that subchapter.

(b) Nothing in this chapter creates a private right of action by a payment stablecoin holder against a permitted payment stablecoin issuer beyond rights available under existing Delaware contract law, tort law, and consumer protection statutes.

85 Del. Laws, c. 339, § 1; 

(a) The Commissioner may, by order, authorize a permitted payment stablecoin issuer to temporarily suspend redemptions of payment stablecoins if all of the following:

(1) The Commissioner determines that immediate suspension is necessary to prevent harm to payment stablecoin holders resulting from an extraordinary market disruption, systemic liquidity crisis, or material cybersecurity incident.

(2) The permitted time, manner, and conditions of any suspension are specified in the order.

(b) A suspension of redemptions ordered under this section may not exceed 10 business days without renewal by the Commissioner upon a new finding of necessity.

(c) Any issuer or holder adversely affected by a suspension order under this section may petition the Court of Chancery for review on an expedited basis.

85 Del. Laws, c. 339, § 1; 

(a) In any insolvency proceeding of a permitted payment stablecoin issuer licensed under this chapter under state law, including any receivership or similar proceeding administered by the Commissioner, the claims of persons holding payment stablecoins issued by the permitted payment stablecoin issuer to the reserve assets backing such payment stablecoins have priority over all other claims against the issuer, including administrative claims, secured claims to the extent such claims relate to reserve assets, and general unsecured claims, consistent with § 11(a) of the GENIUS Act, 12 U.S.C. § 5910(a).

(b) Reserve assets maintained by a permitted payment stablecoin issuer in compliance with § 3521 of this title are not property of the issuer’s estate in any insolvency proceeding, to the extent the reserve assets are identifiable as backing outstanding payment stablecoins. The reserve assets must be held for the benefit of, and distributed to, payment stablecoin holders in accordance with the priority established in subsection (a) of this section.

(c) If the reserve assets of a permitted payment stablecoin issuer are insufficient to satisfy the redemption claims of all payment stablecoin holders in full, the unsatisfied portion of the redemption claims have priority over all other unsecured claims against the issuer, including administrative expense claims and priority claims under any applicable state insolvency framework, consistent with § 11(d) of the GENIUS Act, 12 U.S.C. § 5910(d).

(d) Any person holding a payment stablecoin issued by a permitted payment stablecoin issuer is deemed to hold a claim against the issuer in an insolvency proceeding in the amount of the par value of the payment stablecoin, regardless of whether the person has a direct contractual relationship with the issuer.

(e) In any insolvency proceeding of a permitted payment stablecoin issuer administered by the Commissioner, the Commissioner shall, to the extent practicable, distribute reserve assets to payment stablecoin holders within 30 days of the commencement of the proceeding, and shall prioritize the prompt return of value to payment stablecoin holders over the administration of other claims against the issuer.

(f) In any case under Title 11 of the U.S. Code in which the debtor is a permitted payment stablecoin issuer licensed under this chapter, the Commissioner may raise and may be heard on any issue in the case, consistent with § 11(c) of the GENIUS Act, 12 U.S.C. § 5910(c).

(g) A permitted payment stablecoin issuer that is a nonbank entity licensed under this chapter may be considered a debtor under Title 11 of the U.S. Code. Nothing in this section limits or modifies the application of Title 11 to the debtor except as expressly provided in the GENIUS Act [12 U.S.C. § 5901 et seq.].

(h) The Commissioner shall promulgate regulations establishing procedures for the orderly resolution of a permitted payment stablecoin issuer, which shall be consistent with §§ 10 and 11 of the GENIUS Act, 12 U.S.C. §§ 5909 through 5911, and Office of the Comptroller of the Currency implementing regulations, and which must address at a minimum:

(1) Procedures for the identification, segregation, and distribution of reserve assets to payment stablecoin holders.

(2) Coordination with federal bankruptcy courts in any case in which a permitted payment stablecoin issuer is a debtor under Title 11 of the U.S. Code.

(3) Notification requirements for payment stablecoin holders in the event of an issuer insolvency.

(4) Wind-down procedures consistent with the wind-down planning required under § 3535(a)(9) of this title.

85 Del. Laws, c. 339, § 1;