In 2015, Delaware stood at the forefront of blockchain innovation. Under Governor Jac Markell, the State launched the Delaware Blockchain Initiative (DBI)—a groundbreaking effort that made Delaware the first jurisdiction in the world to legally recognize blockchain for corporate use.
The DBI had three clear goals: to modernize certain state operations using blockchain to cut costs and improve service, update Delaware’s business entity laws so companies could maintain records on-chain, and to open new revenue streams for the state through blockchain-based services.
The results were highly encouraging. Delaware amended its business entity laws to
permit blockchain-based corporate records, unlocking potential governance efficiencies. The Delaware Divisions of Corporations and Archives began piloting blockchain applications. But momentum stalled.
In addition, a multidisciplinary advisory group of Delaware lawyers, judges and business professionals was working earnestly on exploring state use cases. After Markell’s term concluded, these efforts were largely shelved, just as the rest of the world began to embrace the technology.
During the ensuing decade, blockchain technology evolved rapidly. Today, blockchain technology isn’t fringe—it’s foundational. Global financial institutions, Fortune 500 companies, governments, and millions of individual users recognize the technology as beneficial and even potentially transformational. Many organizations adopting or supporting technology are incorporated in Delaware. The volume and complexity of blockchain-based transactions, across individuals, institutions, and sovereign actors, have grown exponentially.
Correspondingly, governments around the world have begun to enact legislation to regulate digital assets and how individuals and businesses interact with them. The European Union’s Markets in Crypto-Assets Regulation (MiCAR) provides a comprehensive framework for digital asset regulation. States like Wyoming and Florida have introduced pioneering frameworks that foster innovation while protecting consumers.
At the federal level, lawmakers have introduced bipartisan legislative initiatives that address the treatment of digital assets. Federal agencies such as the Securities and Exchange Commission, the Office of the Comptroller of the Currency, and the Commodities Futures Trading Commission, have recently announced plans to rescind certain restrictions and shift priorities to enable blockchain innovation.
Just last week, SEC Commissioner Hester Peirce spotlighted blockchain’s potential to tokenize traditional securities, previewing a possible “exemptive order” to enable blockchain-based issuance, trading, and settlement.
This is precisely the kind of innovation Delaware’s Blockchain Amendments were built for. The infrastructure is already in place. What is needed now is reengagement.
Delaware’s unrivaled corporate ecosystem gives it a natural edge. With smart, targeted leadership, Delaware can identify opportunities for growth, efficiency and revenue.
To that end, we are hopeful that a volunteer blockchain task force will be formed, bringing in crypto-native builders, policy experts, and corporate stakeholders to shape a forward-looking agenda. This group, at no cost to the State, could identify Delaware-specific use cases, recommend legislative proposals, and map a clear regulatory path forward.
Delaware was the first jurisdiction to see blockchain’s potential. The rest of the world caught up. Now it’s time to move forward again—with purpose, vision, and action.
David Adlerstein is Of Counsel in the Corporate Department at Wachtell, Lipton, Rosen & Katz. He co-leads the Firm’s Crypto Team.
David Kirk is a founding partner of Kirk & Ingram LLP, a boutique law firm that represents participants in the blockchain industry in litigation, governance, and regulatory matters.
Andrea Tinianow, a Delaware attorney, advises startups in the blockchain industry. She started the Delaware Blockchain Initiative.
Gregory Strong is a Partner in the Delaware office of Cahill Gordon & Reindel LLP. Greg has focused his practice on regulatory advice and litigation related to blockchain technology and digital assets.
