Cryptocurrency
Wyoming stablecoin: Are state digital currencies even possible?
In July, the American state of Wyoming shared an open job position for the head of its Stable Token Commission.
The executive will work alongside Wyoming’s governor, state auditor, state treasurer and four expert appointees to bring the state’s very own stablecoin to life.
While Wyoming was the first to pass a law on a state stablecoin, it isn’t the only state considering launching its own digital currency.
In April, a similar initiative was proposed in Texas, where lawmakers introduced bills for creating a state-based digital currency backed by gold.
However, the idea of state stablecoins raises many questions: How would they affect the monetary stability of fiat money and the power of the Federal Reserve? Could they be compatible with a central bank digital currency? Do people really want to return to a system with state banks printing their own monetary notes?
The Wyoming experiment
The Wyoming Stable Token Act was originally introduced in February 2022, in the midst of the crypto market crisis. The bill defines the Wyoming stable token as a virtual currency representative of and redeemable for one U.S. dollar held in trust by the state of Wyoming. Basically, the state would tokenize the federal currency on a 1:1 ratio with deposits.
NEWS–bipartisan group of top #Wyoming legislators proposed a bill for State of Wyoming to issue a #stablecoin, 100% backed by USTreasuries, where the State keeps the float. I see pros & cons (didn’t know it was coming) but❤️that Wyoming continues to explore cool #crypto ideas! https://t.co/BXbELukUQE
— Caitlin Long ⚡️ (@CaitlinLong_) February 17, 2022
Explaining why state lawmakers took such an interest in the digital token project, Chris Rothfuss, the minority leader in the Wyoming State Senate, told Cointelegraph:
“Wyoming needs to be able to transact in a digital currency — to accept payments, to make payments, and to do so without risk. The Wyoming stable token is the solution to that challenge.”
A notable reservation in Section 2 of the Stable Token Act makes the state’s attorney general responsible for monitoring the startup phase of the token’s issuance. Should the attorney general believe it contradicts federal or state law, the project would be frozen.
The bill also sets a deadline for the project: The commission’s director shall provide their report on the doability of the stable token no later than Nov. 1, 2023.
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Other than that, the document doesn’t specify much; instead, it establishes the Stable Token Commission with the authority to craft further details.
The legislation’s path wasn’t easy. In March 2022, Governor Mark Gordon vetoed the bill, saying he was “unconvinced” that the state’s Treasury was ready to implement the project safely.
Gordon criticized the lack of information and the cost of accounting services, blockchain development and other necessary expenses, and he was skeptical of the project’s purported benefits.
A year later, the governor applauded the effort made by legislators to enhance the document, but voiced new reservations:
“First and foremost, there was no overall plan (a ‘business plan’ for lack of a better term) or, if a plan exists, it did not appear to have been used to guide the legislators in crafting the legislation.”
On March 22, 2023, the Stable Token Act was passed into law without Governor Gordon’s signature. Gordon recognized the state stable token’s potential to “nurture Wyoming’s reputation as a leader in the digital asset world” and deemed the improvements made by the bill’s authors enough to allow it to become law.
The era of multiple stablecoins?
Neither the U.S. Federal Reserve nor any crypto-focused legislators have reacted publicly to the Wyoming project, but it is hard to imagine any kind of affirmative response, given that the American dollar was established precisely to provide a countrywide monetary standard and bring the currency under the purview of the federal government.
So, in principle, any state token project could contradict the logic of central bank currency to a similar degree as private cryptocurrencies.
At the same time, the potential value of Wyoming’s stable token is rigorously tied to the same old American dollar, which makes it less of a separate currency and more of a state-issued financial asset, similar to the state-issued notes for specie of the 19th century.
Rothfuss clarified, “We are not issuing a new currency. The Wyoming stable token is a digital representation of a U.S. dollar held in trust by the state of Wyoming on behalf of the tokenholder. We are not competing with the Federal Reserve — we are enabling a technology.”
Some observers still see a potential conflict between the states and the Fed. “Certainly, there will be a tussle between states and the federal government over the former attempting to issue their own stablecoins,” Brent Xu, CEO of Web3 bond-market platform Umee, told Cointelegraph.
But there could be a compromise in which the Federal Reserve allows states to issue stablecoins under a particular framework, he believes, noting the discussions concerning a national framework for stablecoins.
Zachary Townsend, CEO of Bitcoin-based life insurance provider Meanwhile, doesn’t see any potential problems with state stablecoins, as he believes that the very concept of a stablecoin is open to almost any entity, political or corporate, as the recent example with PayPal’s initiative has shown.
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He told Cointelegraph, “There are going to be tons of private stablecoins. If I just looked at my life and all the companies I have ‘accounts’ or ‘wallets’ or ‘balances’ with, those are going to transform to become stablecoins within a few years.”
This is something Peter Herzog, state policy lead at the Crypto Council for Innovation, can agree with. “There are a variety of models for stablecoins that involve different decisions around underlying collateral, governance and more,” he explained to Cointelegraph. For Herzog, it comes as no surprise that individual states with an active interest in crypto are continuing their experiments with new initiatives:
“Until we see a federal regulatory framework, it is likely that states continue to step in to create rules of the road to promote innovation and protect consumers.”
Bitcoin (BTC) is down almost 7% from its all-time high (ATH), and on-chain signals are flashing a buying opportunity.
According to Darkfost, a pseudonymous analyst at the market intelligence platform CryptoQuant, this buy signal is coming from the Bitcoin Hash Ribbons indicator. This metric tracks the Bitcoin hashrate and is used to identify potential entry points during a market correction.
Is it Time to Buy the Dip?
The Hash Ribbon monitors Bitcoin mining activity and tells when miners are under stress or capitulating by comparing the 30-day and 60-day moving averages of the hashrate. Miner capitulation refers to a period when miners shut down their hardware and sell off their coin reserves to remain afloat because BTC has fallen below a certain price.
On most occasions, the capitulation coincides with the hashrate recovery. The hashrate metric tells how much computational power is required to solve complex math problems and approve transactions on the Bitcoin network. During this period of recovery, mining becomes more difficult.
Market experts say buying BTC during miner capitulation yields significant returns, and the best buy signals are seen during hashrate recoveries. Recently, Bitcoin’s hashrate has been reaching new highs, with the latest being 1.016 billion TH/S. The network’s mining difficulty also surged past 126 trillion during the last adjustment on May 30.
“We recently got a new buy signal from the Hash Ribbons indicator. This metric helps us assess the level of stress in the Bitcoin mining ecosystem. It’s not a big surprise considering that the hashrate has recently reached new all-time highs,” Darkfost stated.
Miners Are Selling Their BTC
Furthermore, the CryptoQuant analyst noted that the Hash Ribbon’s flashing a buy signal is a short-term negative. This is because miners selling their BTC to stay operational create long-term profitable opportunities.
Darkfost explained that the indicator has always been accurate except once, during the 2021 China mining ban event. Hence, the possibility of the metric being correct this time is high.
“Bottom line, this signal is telling you that buying the dip around here is a smart move,” he added.
The analysis comes as a solo BTC miner defied hashrate odds and beat mining giants to validate a block on the Bitcoin network, earning a reward worth over $330,000. Mining successes like this are extremely rare due to the high computational power required to approve transactions.
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[PRESS RELEASE – Dubai, UAE, June 5th, 2025]
The next-generation web3 investor and market maker DWF Labs has announced that the USD1 stablecoin has gone live on DWF Liquid Markets. Its introduction means that more than 1,000 counterparties can access USD1 via DWF’s institutional-grade trading solution.
Developed by World Liberty Financial, USD1 operates as a fiat-backed stablecoin for institutional and retail traders. Custodied by BitGo, USD1 is fully backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.
USD1 will form a cornerstone of DWF Liquid Markets which supports instant OTC trades using a request for quote (RFQ) model. This enables traders to tap into competitive price quotes and execute OTC trades privately with no market impact. Characterized by deep liquidity and 24/7 access, DWF Liquid Markets is optimized for facilitating large trades of leading crypto assets.
Andrei Grachev, Managing Partner at DWF Labs, said: “Stablecoin diversity is integral to supporting a robust trading ecosystem that isn’t reliant on any single dollar-based asset. The launch of USD1 on DWF Liquid Markers supports this goal, giving professional traders access to a versatile and transparent stablecoin that can serve as a base pair for all their trading activity.”
The introduction of USD1 on DWF Liquid Markets will significantly expand access to the institutional-friendly stablecoin which is fully backed by a reserve portfolio audited regularly by a leading accounting firm.
Initially launched on Ethereum and Binance Smart Chain, USD1 will eventually expand to other protocols in the future. Each token is designed to maintain a value of $1 USD and is fully backed by a reserve portfolio audited regularly by a third-party accounting firm.
About DWF Labs
DWF Labs is the new generation Web3 investor and market maker, one of the world’s largest high-frequency cryptocurrency trading entities, which trades spot and derivatives markets on over 60 top exchanges.
Learn more: https://www.dwf-labs.com/
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Bitcoin climbed to a fresh peak in May, but upward momentum slowed as long-term holders began locking in profits. Its price has remained relatively stable this week, fluctuating within a narrow range of $103,000 to $106,000.
At the time of writing, the crypto asset trades below $105,000, which represents a minor decline over the past day. Despite the subdued price action, Bitcoin is seeing an increased user participation.
Strong BTC Network Growth
Bitcoin’s on-chain activity has spiked sharply this week, according to the latest analysis from Santiment. On May 29, the network registered 556,830 newly created wallets – the highest daily total since December 2, 2023, representing a significant surge in user growth.
Just days later, on June 2, Bitcoin saw its most active circulation day since December 8, 2024, with 241,360 BTC moved. These activity spikes coincide with Bitcoin’s price trading just below $105,000.
Santiment noted that rising network growth and token circulation are typically bullish indicators, pointing to a renewed interest and broader utility at a time when the crypto market continues to consolidate.
The latest activity comes as Bitcoin sees renewed bullish accumulation, with new whales, wallets holding 1,000+ BTC with coins aged under six months, doubling their holdings to 1.1 million BTC since March. This 600K BTC surge, which is around $63 billion, now represents 5.6% of the total supply, indicating intensified fresh capital inflows.
Unlike long-held coins, these recent buys suggest increased investor conviction. Combined with a 30% drop in exchange balances and increasing institutional adoption, market experts view this behavior as a setup for a supply squeeze.
While increased network activity and accumulation trends paint a strong demand-side picture, miner-focused metrics are now offering additional insights into the current market setup.
Bitcoin Hash Ribbons Flash Rare Buy Signal
Bitcoin’s Hash Ribbons indicator has issued a new buy signal, highlighting stress within the mining sector. The tool monitors the 30-day and 60-day hashrate moving averages to detect periods when mining becomes less profitable.
Such stress often forces miners to sell their BTC, adding short-term selling pressure. However, this has historically reflected attractive buying opportunities for long-term investors. Given Bitcoin’s hash rate has recently hit all-time highs, the emergence of this signal suggests the current market dip may be worth buying.
It’s important to note that, aside from 2021’s mining ban in China, this indicator has proven consistently reliable in identifying solid entry points.
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