Wyoming Administrative Code Agency 091 - Wyoming Stable Token Commission
🏛️ Agency Structure and Governance
The Commission operates as a body politic and corporate of the state, with the authority to adopt an official seal and to sue and be sued. Its governing board comprises:
The Governor or the Governor's designee
The State Auditor or the Auditor's designee
The State Treasurer or the Treasurer's designee
Up to four subject matter experts in virtual currency and financial technology, appointed by the aforementioned officials.
These experts must be free from conflicts of interest and undergo federal background checks. FindLaw Codes
💰 Stable Token Trust Account
All funds received from the issuance of WSTs are deposited into the Wyoming Stable Token Trust Account. These funds are held in trust to support the redemption of WSTs and cannot be expended for any other purpose. Investments within this account are limited to cash, U.S. Treasury securities with a maturity of 365 days or less, or U.S. Treasury security repurchase agreements with a term of 30 days or less. Justia Law
The Commission is required to maintain not less than 100% of the notional value of all outstanding WSTs in the trust account. Investment earnings exceeding 102% of the notional value are transferred to the Wyoming Stable Token Administration Account to cover operational costs. Justia Law
🔄 Redemption Mechanism
Each WST is redeemable for one U.S. dollar upon demand. However, if the interest rate on U.S. Treasury bills is negative or if the total assets in the trust account divided by the number of outstanding tokens is less than one dollar, the redemption value may be adjusted accordingly. In no case shall the redemption result in the state paying more than the total assets available in the trust account. Justia Law
⚖️ Limitations on Liability
The state, the Commission, and its employees are entitled to immunity from liability in connection with any contract or transaction involving WSTs. The tokens do not constitute general obligations of the state but are special obligations payable solely from the trust account. Token holders have no recourse to any general or other state fund for redemption beyond the trust account. FindLaw Codes
🧾 Notice of Limitations
All contracts, applications, or similar documents related to the purchase of WSTs must clearly state that the tokens are not insured by the state and that the principal deposited is not guaranteed beyond the notional value of the trust account. FindLaw Codes
🧭 Case Law and Precedents
As of now, there are no reported case laws specifically addressing the Wyoming Stable Token Commission or the Wyoming Stable Token Act. The legal framework is relatively new, and its application has not yet been tested in the courts.
🧠 Key Takeaways
Governance: The Commission is a state agency with a board comprising state officials and appointed experts.
Trust Account: Funds are held in a trust account, invested conservatively, and used solely for token redemption.
Redemption: Tokens are redeemable at par value, with safeguards in place to prevent exceeding available assets.
Liability: The state limits its liability, ensuring that token holders' recourse is confined to the trust account.
Transparency: Clear disclosures are required to inform participants of the limitations and risks associated with WSTs.
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