There has been a new bill that has been introduced by the Wyoming officials regarding the different state-issued stablecoins that are to be introduced in the state. According to the CEO of Avanti Financial, Caitlin Long, this particular bill has its very own advantages as well as disadvantages. However, it would definitely prove to be a very interesting topic of discussion for all the lawmakers that are currently in the process of exploring more about stablecoins. According to today’s news for cryptocurrency, there have been some new rules and regulations that have been included in the legislation for the state-issued stablecoins for sure.
There were 4 different members present in the Wyoming Legislature that have managed to sponsor a particular bill or legislation that would eventually allow the treasurer of the state to issue a proper stablecoin for the people to use.
This Thursday, the state senators of Wyoming who are named Tara Nethercott and Chris Rothfuss along with House Representatives Mike Yin and Jared Olsen basically introduced a bill that was named Senate File SF0106. The title of the file was “Wyoming Stable Token Act.” In case the bill was successfully signed to become a proper law in the state, it would definitely provide a lot of authority to the treasurer so that they will be able to issue a proper U.S. dollar-pegged stablecoin that is redeemable for the fiat that is held in any particular account by this state.
This is definitely pretty huge news for the development of stablecoins as well as the treasurer of Wyoming since there are several duties that will be included with the issuing of the stablecoins in the first place. The treasurer of the state named Curtis Meier, during the time this bill will be properly publicized will have to consult with the Investment Funds Committee regarding the role and the authority that he would have.
He would get the authority of hiring “accountants, auditors, consultants and other experts” to issue the coins, as well as stipulate limitations and rules. State officials would have until Dec. 31 to issue the stablecoin, with the option of submitting a report by Nov. 1 if such an offering were determined to be “incompatible with federal or state law.”
Caitlin Long, 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 U.S. dollar” in need of regulatory clarity.
“It’s a mind-bender,” said Long in reference to the proposed stablecoin. “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.”
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 U.S. 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. As of the 17th of February, the Wyoming Stable Token Act has been sent to the Joint Minerals, Business, and Economic Development Committee.