Home News Wyoming lawmakers introduce legislation for state-issued stablecoin

Wyoming lawmakers introduce legislation for state-issued stablecoin

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The state treasurer would have the permission to issue a stablecoin under a bill proposed by four members of the Wyoming Legislature.

Senate File SF0106, named the “Wyoming Stable Token Act,”introduced on Thursday by Wyoming State Senators Chris Rothfuss and Tara Nethercott. As well as House Representatives Jared Olsen and Mike Yin. The measure, if passed into law, would allow the state treasurer to issue a dollar-pegged stablecoin. That could be redeemed for cash held in a state account.

The state treasurer, Curtis Meier at the time of publishing, would have the right to appoint “accountants, auditors, consultants, and other specialists” to issue the coins after consulting with the department’s Investment Funds Committee. As well as establishing boundaries and guidelines. State regulators would have until December 31 to issue the stablecoin. With the option of submitting a report by November 1 if the offering deemed “incompatible with federal or state law.”

Caitlin Long, CEO of Wyoming-based Avanti Financial, chimed in on the legislation. Noting that while it had merits and problems, it was “certainly a conversation-starter” for lawmakers looking into stablecoins. Stablecoins, according to Long, are “extremely essential bridges between crypto and the US dollar” that require legislative certainty.

In response to the proposed stablecoin, Long commented, “It’s a mind-bender”. “It’s like a muni bond that doesn’t pay interest or have a maturity date but can be redeemed. But it isn’t exactly that because there would be significant legal and structural/settlement differences.”

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Rothfuss is the chair of Wyoming’s Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology, which established in May 2020 to study cryptocurrency and blockchain advancements and to propose laws connected to them. Since gaining office, Nethercott, Olsen, Rothfuss, and other Wyoming legislators have supported a measure proposing that cryptocurrencies be excluded from state property taxes. As well as two additional bills dealing with tokenization and compliance issues.

Wyoming has been at the vanguard of a state-centred approach to crypto regulation. With multiple pieces of legislation that appear to be beneficial to the industry and a U.S. Senator, Cynthia Lummis, who owns Bitcoin (BTC). In September 2020, Kraken became the first cryptocurrency company granted a Wyoming bank licence. With the State Banking Board later accepted a charter for Avanti.

The Wyoming Stable Token Act sent to the Joint Minerals, Business, and Economic Development Committee on February 17th.

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