I'm not saying this is a good idea, but the Code of Federal Regulations governing the canal does not appear to preclude sailing through it. Best thing to do would be to contact the USACE's Resident
Engineer at Chesapeake City for clarification.
https://www.law.cornell.edu/cfr/text/33/207.100
33 CFR:
§ 207.100 Inland waterway from Delaware River to
Chesapeake Bay, Del. and Md. (Chesapeake and Delaware Canal); use, administration, and
navigation.
(a)Applicability. The regulations in this section are applicable to that part of the inland waterway from Delaware River to
Chesapeake Bay, Del. and Md., between Reedy Point, Delaware River, and Old Town Point Wharf, Elk River.
(b)Supervision. The District
Engineer, Corps of Engineers, Philadelphia, Pa., has administrative supervision over the waterway and is charged with the enforcement of these regulations. The District Engineer from time to time will prescribe rules governing the dimensions of vessels which may transit the waterway, and other special conditions and requirements which will govern the movement of vessels using the waterway. The District Engineer's representative is the Chesapeake City Resident Engineer. The Chesapeake City Resident Engineer through the dispatcher on duty will enforce these regulations and
monitor traffic through the canal.
(c)Safe
navigation required. Clearance for any vessel to enter or pass through any part of the waterway will be contingent on the vessel's having adequate personnel, machinery, and operative devices for safe navigation. In the event of question as to the ability of any vessel to navigate the waterway safely, a ruling will be made by the dispatcher. The owner, agent, master, pilot, or other person in charge of the vessel concerned may appeal the dispatcher's ruling to the District Engineer whose decision shall be final. A clearance by the dispatcher for a vessel's
passage through the waterway shall not relieve the owners, agents, and operators of the vessel of full responsibility for its safe passage.
(d)Radio
equipment. Requirements for
radio equipment on vessels transiting the waterway are as described in rules governing traffic through the waterway issued by the District Engineer. Vessels not having the mandatory
radio equipment will not be permitted to transit the canal.