By Alicia Maher
Wyoming state senators and the house of rep. Members proposed the “Wyoming stable token act,” file number SF0106, to the legislative house on February 17. If the members approve the bill to law, the Wyoming state treasurer now has the authority to issue a USD-pegged stablecoin held in the state account, which can be redeemed for fiat dollars.
Rules And Regulations To Follow
The legalized bill will also authorize the state treasurer to liaise with the investment funds committee and hire valuable hands to assist him in issuing the coin and suggesting rules and limitations. State officials are required by law to send in a report by November 1 to determine whether the offering is compatible with federal laws. If it is compatible, they can issue their stablecoin by December 1.
Avanti financial chief executive, Catlin Long, commented that the bill is proof of the lawmakers’ interest in stablecoin exploration even though the bill has its merits and demerits. Long had earlier disclosed that stablecoins also require regulatory clarity since they are a crucial bridge between crypto and the USD.
She further said, “this proposed stablecoin is similar to a muni bond that is redeemable but offers no interest or has a maturity date. However, it is different from the stablecoin because there are strong legal requirements in issuing a stablecoin and the structure of the offer also differs.”
Wyoming Always Lead Other States In Its Crypto Regulation Approach
Before the proposal for this new bill, Wyoming lawmakers had sponsored a bill that proposed tax exemption on state properties for crypto holders. It has also proposed a bill a tokenization and compliance issues. One of the reasons for Wyoming’s accelerated approach to crypto issues might be the establishment of the 2-year old blockchain, financial technology, and digital innovation technology group led by Rothfuss.
Rothfuss and other Wyoming representatives, notably Olsen and Nethercott, have spearheaded the state’s approach to crypto-related issues. Many of their crypto policies adopted by this state have always been favorable to the crypto community and Cynthia Cummins, top us senator, BTC advocate, and holder.
Wyoming’s Crypto Development
Wyoming issued its first bank charter to Kraken two years ago before Avanti became the second crypto firm to receive its Wyoming-issued bank charter. As of this writing, the joint minerals, business, and economic development committee have acknowledged that it has received the Wyoming stablecoin token bill proposal. All efforts by the media to get a word with Chris Rothfuss, Wyoming’s State Senator, hasn’t been successful as of this writing.
There have been several talks regarding stablecoins this week. Various federal agencies await the President’s executive order, which may likely be released next week, authorizing them to offer multiple contributions to developing crypto regulation, including stablecoins. Hence, it is no wonder that circle (top stablecoin issuer) delayed its IPO. Circle has yet to provide details of any new schedule for its IPO launch. However, many expect the launch to happen before the middle of next month.