Yigit Taha OZTURK 
Governor Arnold Palacios of the U.S. Pacific territory Northern Mariana Islands has vetoed a bill that would have allowed the island of Tinian to launch a fully backed USD-pegged stablecoin (MUSD).
In a letter dated April 11, Palacios said the bill “presents several legal issues and may be unconstitutional.” While the bill primarily aimed to regulate internet casino licensing, it also included a clause granting the Tinian Municipal Treasury authority to issue and manage the MUSD.
Stablecoin Hidden Within Internet Casino Bill
The legislation, introduced by Republican Senator Jude Hofschneider in February, sought to amend local law to allow internet-only casinos on Tinian. It included a clause enabling the municipality to issue, manage, and redeem the “Tinian Stable Token.”
You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!
The four-member Tinian delegation passed the bill unanimously on March 12. However, Palacios objected to its overreach, saying it lacked strong measures to combat illegal gambling activities and overstepped local jurisdiction.
Tinian Loses Race to Be First U.S. Stablecoin Issuer
Had it passed, the bill could have made Tinian the first U.S. government entity to issue a stablecoin, beating Wyoming, which plans to launch its state-backed coin in July.
The MUSD was to be fully backed by cash and U.S. Treasury bills and administered by the Tinian treasury. Marianas Rai Corporation, based in Saipan, was selected to provide the stablecoin’s technical infrastructure. The token was planned for release on the eCash blockchain, a fork of Bitcoin Cash ABC.
The stablecoin launch was intended to coincide with Google’s $1 billion subsea cable project running through Tinian, enhancing the island’s digital connectivity.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.