Reports said that four members of the Wyoming Legislature have sponsored a bill that would allow the state treasurer to issue a stablecoin.
It has been reported that Wyoming State Senators Chris Rothfuss and Tara Nethercott with House Representatives Jared Olsen and Mike Yin introduced Senate File SF0106, titled the “Wyoming Stable Token Act.” If signed into law, the bill would authorize the treasurer to issue a US dollar-pegged stablecoin redeemable for fiat held in an account by the state.
However, the state treasurer, Curtis Meier, as of February 18, would consult with the department’s Investment Funds Committee and have the authority to hire “accountants, auditors, consultants and other experts” to issue the coins, as well as stipulate limitations and rules.
The report said that state officials would have until December 31 to issue the stablecoin, with the option of submitting a report by November 1 if such an offering were determined to be “incompatible federal or state law.”
Caitlin Long, the CEO of Avanti Financial, which is headquartered in Wyoming, weighed in on the legislation, saying there were pros and cons to the bill, but it was “definitely a conversation-starter” for lawmakers exploring stablecoins. Long has previously described stablecoins as “very important bridges between crypto and the US dollar” in need of regulatory clarity.
“It's a mind-bender. Akin to a muni bond that neither pays interest nor has a maturity date but is redeemable — except it isn't exactly that bc, as a token, there would be big legal & structural/settlement differences.”
Likewise, Rothfuss chairs Wyoming’s Select Committee on Blockchain, Financial Technology and Digital Innovation Technology, a group formed in May 2020 to examine crypto and blockchain developments that is able to sponsor related legislation. Since taking office, Nethercott, Olsen, Rothfuss, and other Wyoming lawmakers have sponsored a bill suggesting cryptocurrencies be exempt from state property taxes and two others on tokenization and issues with compliance.
Wyoming has often been at the forefront of a state-centered approach to crypto regulation with many pieces of legislation seemingly favorable to the space and a US Senator who holds Bitcoin (BTC), Cynthia Lummis.
Kraken became the first crypto business to receive a Wyoming bank charter in September 2020, with the State Banking Board later approving a charter for Avanti.
Thus, as of February 17, the Wyoming Stable Token Act has been sent to the Joint Minerals, Business and Economic Development Committee.