Four members of the Wyoming Legislature have sponsored a bill that would allow the state treasurer to issue a stablecoin.
On Thursday, Wyoming State Senators Chris Rothfuss and Tara Nethercott, along with House Representatives Jared Olsen and Mike Yin, introduced Senate File SF0106, titled “Wyoming Stable Token Act.” If signed into law, the bill would authorize the treasurer to issue a stablecoin pegged to the US dollar redeemable for fiat in a state account.
State Treasurer Curtis Meier at press time would consult with the department’s Mutual 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. State officials would have until December 31 to issue the stablecoin, with the option to file a report by November 1 if such an offering is found to be “inconsistent with federal or state law.”
Caitlin Long, CEO of Wyoming-based Avanti Financial, weighed in on the legislation, saying the bill had pros and cons but was “definitely a talking point” for lawmakers exploring stablecoins. Long previously described stablecoins as “very important bridges between crypto and the US dollar” that need regulatory clarity.
“It’s amazing” said Long in reference to the proposed stablecoin. “Like a municipal bond that doesn’t pay interest and doesn’t have a maturity date, but it’s callable, except it’s not exactly that because, as you show, there would be big legal and structural/settlement differences.”
NEWS–bipartisan caucus of leaders #Wyoming lawmakers proposed a bill for the State of Wyoming to issue a #stablecoin, 100% backed by USTreasuries, where the State maintains the float. I see pros and cons (didn’t know it was coming), but ❤️that Wyoming continues to explore great #crypto ideas! https://t.co/BXbELukUQE
— Caitlin Long ⚡️ (@CaitlinLong_) February 17, 2022
Rothfuss chairs the Wyoming Blockchain, Financial Technology, and Digital Innovation Technology Select Committee, a group formed in May 2020 to examine crypto and blockchain developments and able to sponsor related legislation. Since taking office, Nethercott, Olsen, Rothfuss and other Wyoming lawmakers previously sponsored a bill suggesting cryptocurrencies be exempt from state property taxes and two others on tokenization and compliance issues.
Related: Wyoming’s Crypto-Friendly Bill Could Be a Sandbox in Action, Says Sen. Lummis
Wyoming has often been at the forefront of a state-centric approach to crypto regulation with many seemingly pro-space laws and a Bitcoin (BTC)-owning US Senator, Cynthia Lummis. Kraken became the first cryptocurrency company to receive a Wyoming banking charter in September 2020, and the State Banking Board subsequently approved a charter for Avanti.
As of February 17, the Wyoming Stable Token Act has been submitted to the Joint Committee on Minerals, Business and Economic Development.
Cointelegraph reached out to Wyoming State Senator Chris Rothfuss but did not receive a response at press time.
This post Wyoming Lawmakers Introduce State-Issued Stablecoin Legislation
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