30th August 2024 > > Wyoming.

tl;dr

Wyoming is launching its own stablecoin for the benefit of school children.

Market Snap

Market Wrap

A brief spike to $61k was quickly slapped down again, for reasons that continue to confound me. I guess three straight days of spot BTC ETF outflows sit centre stage taking all the attention. I note that exchange reserves are at a yearly low and seemingly heading in one direction only.

Curious Cryptos’ Commentary – Wyoming

Wyoming, represented by crypto heroine Senator Cynthia Lummis, has long been a beacon for liberty and freedom, encapsulated in its welcome for all things crypto.

The Wyoming Stable Token Act became law in early 2023:

https://wyoleg.gov/Legislation/2023/SF0127

In July last year, the state created the Wyoming Stable Token Commission. You can follow updates here:

https://stabletoken.notion.site/Wyoming-Stable-Token-Commission-a24290df29cd4eaa897c6d628b007930

The Wyoming stablecoin will act much like all other stablecoins – it will be issued 1:1 against a fiat dollar and will be fully/over-collateralised with cash, cash-like instruments (short-term treasury bills), and various repo agreements, as per the legislation in section 40-31-106:

“(b) Not less than one hundred percent (100%) of the notional value of all outstanding issued Wyoming stable tokens shall be maintained in the Wyoming stable token trust account.”

Nothing particularly innovative there. So, what’s the point? Stablecoins are wildly profitable – Tether is making billions of dollars every quarter with less than one hundred employees. Wyoming State wants a piece of that action. The legislation continues with this:

“All earnings paid on funds and investments in the account shall be deposited in the account. Investment earnings on funds in the account in excess of one hundred two percent (102%) of the notional value of all outstanding issued Wyoming stable tokens shall be transferred to the Wyoming stable token administration account.”

And what happens to the excess cash held in the administration account? Put your sceptical cowboy hat away, no, there won’t be a bigger house built for the Senators. It will be used for one purpose only after operational costs have been paid. Section 40-31-106 (c) (iii) is very clear on this point:

“Any remainder shall be distributed on a quarterly basis, into the school foundation program account created by W.S. 21‑13‑306(a).”

Lovely, a big boost to the state education fund from a Wyoming stablecoin. Cryptos just get better and better. The launch date is set for Q1 2025.

…

Megalomaniac Gensler, whose latest plans are limited to simply being world ruler (https://www.curiouscryptos.com/post/29th-august-2024-gensler), and the SEC are going to be having kittens over this one.

That is, if he is still in the job next year.