The Wyoming Stable Token Commission May Clarify Its Language to Better Comply with Potential Guidelines from the Securities and Exchange Commission (SEC)

The Wyoming Stable Token Commission, a body authorized by the US state to issue a stablecoin, has suggested that it may clarify its language to better comply with potential guidelines from the Securities and Exchange Commission (SEC).

The Wyoming Stable Token Commission may adjust its terminology to align better with potential guidelines from the Securities and Exchange Commission (SEC), aiming to minimize the risk of the state's proposed WYST stablecoin being classified as a security.

During an April 17 meeting in an extension of the Wyoming Capitol building, Commissioner Joel Revill suggested that the body could reduce the risk of the state’s proposed WYST stablecoin qualifying as a security under SEC rules. The discussion among the commissioners and Executive Director Anthony Apollo followed the SEC issuing guidelines that certain “covered stablecoins” were considered” non-securities” and largely not subject to reporting requirements.

“We’re looking to kind of create our own vernacular around some of this, to clarify, and then use that as a jumping off point of discussion for the commission,” Apollo said.

The commission, established after Wyoming passed a law to issue a state-issued stablecoin pegged to the US dollar and redeemable for fiat currency, has been exploring issues surrounding WYST. Wyoming Governor Mark Gordon said in August that the government initially planned a launch in the first quarter of 2025 for the stablecoin, later amending the timeline to potentially launch in July.

The commission said it would be monitoring efforts by the federal government to establish a regulatory framework for stablecoins. Among the proposed legislation was the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, in the Senate, and the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, in the House of Representatives.

Among the topics discussed at the meeting were:

* The SEC’s non-operability in setting forth a concise definition of a "stablecoin."

* The commission’s intent to engage in a dialogue with the SEC.

* The commission’s potential to serve as a model for other states.

* The role of the Wyoming Blockchain Initiative in facilitating cooperation with other state agencies.

"We can hit the pause button and say, 'Okay, SEC, we're listening. What do you have to say?'" said Revill, in response to a question on whether the commission should delay its decision on the stablecoin.

The commission is expected to continue its discussion on the SEC guidance and provide an update to the governor and the legislature in May.