The island of Tinian, part of the Northern Mariana Islands, is once again at the forefront of a bold financial experiment. On May 9, the territory’s Senate voted decisively—7 to 1—to override Governor Arnold Palacios’ veto of a bill that could see Tinian issuing its own stablecoin. This legislative move propels the bill toward the Northern Mariana Islands House, where a two-thirds majority is needed to cement it into law.
A New Frontier for Stablecoins?
In the shadows of global crypto giants, Tinian—a petite island with just over 2,000 inhabitants—has been crafting a narrative of its own. If the House gives its nod, Tinian could become the first US public entity to issue a stablecoin, edging past Wyoming, which is eyeing a similar launch by July 2025. The bill would empower Tinian’s local government to issue licenses to internet casinos while also allowing the Tinian treasurer to manage and redeem the “Tinian Stable Token.”
But here’s the twist: this isn’t just any stablecoin. Dubbed the Marianas US Dollar (MUSD), it’s envisioned as a fully dollar-pegged digital asset, backed by cash and US Treasury bills stored in the Tinian Municipal Treasury. This stablecoin would be built on the eCash blockchain, a platform that evolved from Bitcoin Cash ABC in 2021.
Voices of Dissent and Support
The move hasn’t been without its critics. Democrat Senator Celina Babauta, the lone dissenting voice in the Senate vote, expressed significant concerns regarding the bill. “Deep concerns with respect to the lack of resources, the lack of manpower” were among her reservations. Babauta questioned the island’s capacity to effectively police the use of such a stablecoin, given its limited resources.
In stark contrast, Republican Senator Karl King-Nabors, a co-author of the bill, painted a picture of economic revival. “This stablecoin is tracked through software, and if anything, it allows for more transparency,” he argued, emphasizing the legislation’s role in economic diversification. King-Nabors sees it as a lifeline for Tinian’s economy, still reeling from the pandemic’s aftershocks. “We’re trying to incentivize and look for ways to bring in revenue that don’t affect our environment,” he added with conviction.
The Global Context
This legislative push in Tinian comes at a time when stablecoins are under intense scrutiny worldwide. In the US, legislative efforts like the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act have hit roadblocks. These setbacks, partly fueled by political entanglements and concerns over former President Donald Trump’s crypto ventures, highlight the complex regulatory landscape stablecoins must navigate. For more on the US legislative landscape, see our coverage of the U.S. Senate’s moves toward action on a stablecoin bill.
Meanwhile, Marianas Rai Corporation, the tech firm tasked with handling the MUSD infrastructure, is poised for action. Co-founder Vin Armani remarked in April that they’re in “active discussions with potential partners” to launch the token.
The Road Ahead
As Tinian edges closer to potentially issuing the MUSD, questions linger. How will this tiny island balance the innovation of a stablecoin with regulatory compliance? Can it truly lead where larger states have hesitated? And what ripple effects might this have on the broader crypto landscape? The recent decision by the SEC to drop its probe into PayPal’s PYUSD, as detailed in our article on regulatory hurdles for stablecoins, underscores the shifting regulatory environment that Tinian will have to navigate.
The journey of Tinian’s stablecoin bill is a microcosm of the broader dance between innovation and regulation in the crypto world. While the island’s ambitions are clear, only time will tell if these plans will come to fruition or if they will remain dreams deferred.
Source
This article is based on: Stablecoin bill gets second chance with Northern Mariana lawmakers
Further Reading
Deepen your understanding with these related articles:
- Visa and Baanx Launch USDC Stablecoin Payment Cards
- Tether’s U.S.-Focused Stablecoin Could Launch Later This Year, CEO Paolo Ardoino Says
- Ripple Offered $4B-$5B for Stablecoin Issuer Circle: Bloomberg
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
