Wyoming Governor Mark Gordon approved the Wyoming Stable Token Act without his signature last Friday. In a two-page letter to Secretary of State Chuck Gray, he stated that although the law is an improvement over a similar bill he vetoed last year, he still has reservations. The proposed legislation lacks the “firm plan” necessary for the state to issue digital money. He stated that the sponsors worked hard to address several of his issues.
“Nevertheless, I continue to harbour some reservations about the potential impact this program may have on Wyoming’s hard fought reputation as a thoughtful and strong leader in the world of digital assets.”
Since this bill has been passed, Wyoming is set to be the first U.S. state to have issued an official stablecoin. The bill authorises the formation of a specialised stablecoin commission with the capacity to issue them. It also intends to hire project managers with a $500,000 administrative budget.
Other factors to consider are the qualifications required for an executive director, the kind of employees required, their tasks, and other financial concerns, he added. Gordon suggested that the stablecoin commission be fully established before minting any tokens. He pointed to recent volatility in the crypto industry as an example of what may happen to a poorly thought-out “build-it-and-they-will-come scheme.” Given the present context, he is unsure whether a substantial market for a Wyoming stablecoin exists.
The Governor is still sceptical about the stablecoin act’s influence on the state’s position as a leader in the crypto sector. But he agreed that it didn’t have to be flawless to move on.
“Wyoming’s Legislature has made significant contributions to advancing the digital landscape. Innovation does not always wait for the perfect, rather it emerges, is refined, and eventually becomes established. Still, first movers are not always rewarded. They are, however, vital for progress.”
MiamiCoin and NYCCoin, two digital coins that were early adopters at the municipal government level, were halted from trading on their primary exchange last week due to a lack of liquidity. The token, which has no name yet, would be backed by one-for-one investments in US Treasury notes and held in trust by the state, with the state hoping to earn interest on the investments. The total cryptocurrency industry is now valued at almost $1.15 trillion, with stable tokens and coins used to buy and invest in tokens and platforms, as well as function as a store of wealth.