The island of Tinian, situated in the Northern Mariana Islands, is moving closer to introducing its own stablecoin after the territory’s Senate took decisive action to override a previous veto from Governor Arnold Palacios.
On May 9, the Senate reached a 7-1 vote favoring the advancement of legislation that would permit the Tinian government to license internet casinos and establish a dollar-backed cryptocurrency, termed the “Tinian Stable Token.”
This bill is set to proceed to the 20-member House of Representatives, where it will need a two-thirds majority to successfully overturn the governor’s earlier veto and become law.
Tinian Aiming for Milestone in U.S. Stablecoin Development
If enacted, Tinian would position itself as the first U.S. public authority to issue a government-backed stablecoin, potentially surpassing the state of Wyoming, which is targeting a July launch.
Governor Palacios originally vetoed the bill on April 11, raising constitutional issues and questioning the viability of limiting the stablecoin’s usage to Tinian’s legal framework.
Democrat Senator Celina Babauta, the sole dissenting vote in the Senate, expressed doubts regarding the island’s ability to manage such a program effectively, citing insufficient resources and the need to adhere to federal regulations.
“We are restricted by federal statutes and must comply with that,” Babauta stated.
In contrast, proponents of the bill argue that it presents a timely opportunity to address Tinian’s persistent economic challenges.
Senator Karl King-Nabors, a co-author of the legislation and representative of Tinian, emphasized that the bill enhances transparency and supports economic diversification.
“This stablecoin is tracked through software,” he remarked, “and if anything, it allows for more transparency when it comes to the Tinian Casino Gaming Control Commission.”
Breaking: STABLE Act of 2025 “StableCoins as legal tender” HR 2392 Placed on the Union Calendar No. 68
“To provide for the regulation of payment stablecoins” – if passed this will make crypto StableCoins legal tender in the USA. https://t.co/yirBdwOvoI
(15) PAYMENT… pic.twitter.com/wkNaktnZmy
— MartyParty (@martypartymusic) May 8, 2025
The original proposal, introduced by Republican Senator Jude Hofschneider in February, calls for the introduction of a fully collateralized stablecoin called the Marianas US Dollar (MUSD).
This token would be secured by cash and U.S. Treasury bills in the possession of the Tinian Municipal Treasury, and it is planned to be issued through the eCash blockchain, which is a derivative of Bitcoin Cash.
Marianas Rai Corporation, based in Saipan, has been selected for the exclusive role of providing infrastructure for the issuance and redemption of MUSD.
Intensifying Discussions on Stablecoin Regulations
This legislative initiative surfaces amid a broader discourse on stablecoin regulations across the U.S.
Efforts such as the GENIUS Act and the STABLE Act have faced significant delays in Congress, largely due to political rifts stemming from former President Donald Trump’s advancing cryptocurrency initiatives.
This friction comes despite an increasing bipartisan push towards crypto regulation.
A stablecoin measure led by Senator Bill Hagerty (R-Tenn.) passed out of the Senate Banking Committee in March with support from five Democratic members.
Nonetheless, progress has seemingly halted amid escalating political divisions.
Concerns within the Democratic ranks grew last week during a private caucus meeting, where Senate Majority Leader Chuck Schumer cautioned fellow members against endorsing the current version of the bill.
At the same time, Citigroup has projected a massive growth in the stablecoin market, predicting that its total market capitalization could surge from approximately $240 billion today to over $2 trillion by 2030.
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