InfoBytes Blog
Wyoming to issue stable tokens
On March 17, the Wyoming governor signed SF 127 enacting the Wyoming Stable Token Act, creating the Wyoming stable token commission, and authorizing the issuance of stable tokens in the state. Under the Act, a Wyoming stable token is “a virtual currency representative of and redeemable for one (1) United States dollar held in trust by the state of Wyoming” that may only be issued in exchange for a USD. Stable tokens will be issued by the Wyoming stable token commission—created by the Act and to be comprised of no more than four virtual currency/fintech subject matter experts. The commission is authorized to, among other things, (i) establish “the means used to issue, maintain and manage the Wyoming stable tokens and the manner of and requirements for redemption”; (ii) select which financial institutions will manage the stable tokens, and make and enter into contracts and arrangements for such services; (iii) seek rulings and other guidance from federal agencies related to the provisions outlined in the Act; (iv) prior to issuing any such tokens, issue a comprehensive report to a select committee overseeing blockchain, financial technology, and digital innovation technology, among others, on all actions taken under the Act; and (v) promulgate rules and regulations as necessary to administer the Act and ensure compliance. The Act also outlines criteria relating to liability limitations and requires that the commission endeavor to issue at least one Wyoming stable token no later than December 31.