Wyoming Legislators Propose a Bill Seeking to Issue a State-Backed Stablecoin
Four members of the Wyoming Legislature have backed a bill proposal that would see the State Treasurer issue a stablecoin. Wyoming State Senators Tara Nethercott and Chris Rothfuss together with House representatives Mike Yin and Jared Olsen introduced the Senate file SF0106 on Thursday.
Wyoming Lawmakers Set a State-Issued Stablecoin Plan in Motion
Four Wyoming Legislature members: Wyoming State Senators Tara Nethercott and Chris Roth fuss and House representatives Mike Yin and Jared Olsen have introduced a bill to allow the State to issue a stablecoin.
They filed the bill “Wyoming Stable Token Act” on Thursday, and if turned into a law, the State Treasurer would issue a USD-backed stablecoin. The coin would be redeemable to fiat through a bank account under the State’s control.
The State Treasurer would have consulted with the State Department’s Investment Funds Committee and mandated to hire a workforce for the project. The Treasurer would also have the authority to stipulate rules and limitations for use in issuing the coin.
Additionally, State officials would have till the end of the year to issue the coin with an option of submitting a report by Nov 1, 2022. Yesterday, the bill was sent to the Joint Minerals, Business, and Economic Development Committee.
More on Wyoming’s Stablecoin Bill.
Wyoming’s Stablecoin Bill has attracted the attention of many, with Caitlin Long, CEO of Avanti Financial, commenting on it. Being headquartered in Wyoming, Caitlin is among the relevant crypto stakeholders there. After going through it, she commented that the bill has both pros and cons.
Caitlin continued that the proposal is a real “conversation starter” for other lawmakers who are looking to dawn on stablecoins. She has previously expressed that stablecoins are crucial bridges between crypto and fiat in the US and need regulatory clarity.
Rothfuss chairs Wyoming’s Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology. The group was formed in 2020 to study cryptos and blockchain technology that can sponsor related legislation.
Crypto Regulation in Wyoming
Wyoming has been following a State centered approach in regulating digital assets. Many of its current legislation on the assets seem favorable to the crypto space and the US. Senator Cynthia Lummis has also publicly revealed that she believes in cryptos and even holds bitcoin (BTC).
Since assuming office, Rothfuss has sponsored another bill seeking to exempt crypto from state property taxing. He has also sponsored two more on tokenization and legal compliance issues.
The State seems to fully back digital assets under the condition that they are regulated to mitigate possible risks. In September 2020, the State issued the first Wyoming bank Charter to crypto exchange Kraken. Later on, it also approved a charter for Avanti.
Elsewhere, other countries are also waiting for legal clarity on cryptos. The US expects to receive Biden’s executive order on cryptos next week with fears of a possible delay due to a fallout between the White House and the Treasury Secretary. Russians are also waiting to know the fate of cryptocurrencies there as the Central Bank keeps opposing their adoption.
However, it is good to keep updated as these early regulations largely influence other regulations.
