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.”
The following five factors are more rocket fuel for prices to rally in XRP markets at the right time in 2025, even though the asset remains far from its early 2025 peak.
1. Bullish 15-Day Cup and Handle Pattern
XRP’s daily trading price continued in mid-April to trace a 90-day falling flag pattern visible at the 1Y view. Moreover, the indicator exhibits the classic declining trend in daily exchange volume. This pattern often signals an end to corrective bear markets and a reversion to the broader bullish trend.
Furthermore, at the 1M view, XRP’s price rounds out converging trend lines on the falling flag trace with a textbook bullish cup and handle pattern over 15 days from Apr. 2 to Apr. 17.
The cup formation spans 10 days from Apr. 2 to Apr. 12 and the slightly downward listing range channel forming the handle appeared from then until Apr. 17, according to data from CoinMarketCap.
Ripple token trading exhibited declining 24H trade volume from above $16 billion in the cup’s middle to below $3 billion during the handle portion of the chart technical indicator.
According to Investopedia, “The cup and handle is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume.”
2. HNWI Manager: Institutions Quietly Stockpile XRP
Major institutions are stacking up #XRP behind the scenes while keeping the public in the dark. The current price is merely a shadow of what’s coming. When XRP transforms into the foundation of international finance, today’s hesitation will become tomorrow’s regret. In my…
— Jake Claver, QFOP (@beyond_broke) April 10, 2025
There’s no doubt of institutional interest in XRP because of the spot ETF applications at the SEC and Ripple’s partnerships with big global financial clearinghouses.
But Cheyenne, Wyoming-based family office wealth director Jake Claver had a hot tip for altcoin investors on Apr. 10. He said in a note on X that, “Major institutions are stacking up #XRP behind the scenes while keeping the public in the dark.”
“The current price is merely a shadow of what’s coming,” Claver added. “In my opinion, nothing in crypto space offers this level of certainty and potential for massive returns.”
Some repliers challenged Claver to show any evidence of the provocative claim.
While part of the claim is that the major players are keeping such evidence scant, one bit of circumstantial evidence is the frequent sightings in 2024 and 2025 by blockchain explorers of tremendous whale-sized XRP transactions.
131,000,000 #XRP (273,945,648 USD) transferred from unknown wallet to unknown wallethttps://t.co/CnMiTrxABL
— Whale Alert (@whale_alert) April 15, 2025
More direct evidence would be the public knowledge that banks like Santander, American Express, SBI Holdings, PNC, and Commonwealth Bank use XRP to make large international transfers.
That’s what XRP is built for.
3. XRP ETF Applications Top Ten at US SEC
2x leveraged XRP ETF is *currently* live & trading…
I simply don’t see this SEC not approving spot XRP ETF.
And sooner, rather than later.
— Nate Geraci (@NateGeraci) April 16, 2025
Bitcoin’s price cranked up 166% within two quarters from $27,400 in Oct. 2023 to $73,000 in Mar. 2024. The rally revolved around the first Bitcoin ETF approvals by the SEC in Jan. 2024.
In mid-April, XRP had 10 spot ETF applications in the queue at the SEC, according to Paris, France-based blockchain research firm Kaiko. That highlights impending demand for Ripple tokens by institutional investors.
The second-most applications out of the crypto segment was five for Solana. Dogecoin and Litecoin had three each pending at the SEC in mid-April. Kaiko projects XRP will be the next blockchain currency to get a spot ETF in the US.
4. X Buzz Over Possible SWIFT Partnership
April 16 and April 21 could become the two most important dates in XRP’s history.
And I’m not saying this for hype. I’m saying it because of context, data, and a narrative that’s been building for years.
Let’s start with April 16:
It’s the deadline for Ripple to submit its…
— John Squire (@TheCryptoSquire) April 13, 2025
Meanwhile, popular Crypto X provocateur John Squire, “The Crypto Squire,” famous to over half a million followers, suggested on Apr. 13 that SWIFT could start using XRP as soon as April.
“In 2023, Ripple already participated in interoperability pilot programs led by SWIFT,” Squire wrote. “More recently, SWIFT published a report discussing the integration of Distributed Ledger Technology (DLT)… XRP was part of that conversation.”
Popular Crypto X #XRPArmy booster Amonyx fanned the flames with a video of YouTube business podcaster and motivational speaker Patrick Bet-David pumping XRP in terms of SWIFT payments market share.
Even without a SWIFT partnership, as Ripple captures any significant portion of forward market share growth in SWIFT’s trillion-dollar payments businesses, XRP prices are apt to skyrocket once more.
5. XRP Price Support From Froggy Bitcoin Market
Finally in this list, there’s the support for XRP prices from directly adjacent Bitcoin exchange markets that cyclically draw up vast amounts of capital inflows.
Brokers make BTC sales to individuals and organizations from all walks of life across the planet, at all levels of wealth from third world laborer individual investors to the US government.
Because XRP is a direct trading pair with Bitcoin on dozens of highly liquid currency exchange platforms, BTC generates an enormous long-term support for the former’s value.
While stocks continued to swoon in April over Trump tariffs realigning global trade deals, Bitcoin decoupled from other “risk” markets and went for a cool mid-month rally.
Wall Street Bitcoin ETFs joined the rally in a potential preview of price support from mainstream financial integrations with XRP via the pending Ripple ETFs.
Ripple CEO Brad Garlinghouse remarked in April that he sees Bitcoin’s price topping $200,000 in 2025. Another analyst noted that in March and April, Bitcoin whales have been buying BTC like never before.
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The cryptocurrency market took a sudden dive in the past couple of hours, with the XRP price making no exceptions.
XRP Price Tumbles but Funding Rates Surprise
XRP tumbled by around 2% in the past hour, bringing its total losses to about 8% for the last day. At the time of this writing, the cryptocurrency is trading at around $2.04.
That said, the funding rates on XRP derivatives positions are currently positive. What this means in Layman’s terms is that traders who have long positions are paying those who have short positions. In other words, the sentiment on the derivatives market is currently positive.
Could this mean that the XRP price is about to rebound? Not necessarily – positive funding rates only indicate the prevailing sentiment but sentiment is not necessarily tied up to the short-term price action. Short positions could pile up to “farm” the positive funding rates until the market regulates itself into an equilibrium.
Crypto Markets Plunge
Elsewhere, the broader crypto market is also declining.
As seen in the heatmap above, Bitcoin’s price is trading at around $84,000, down by around 1% on the day, but the losses some altcoins are charting are considerably higher.
For example, Dogecoin (DOGE) is down 8%, Cardano (ADA) is down 6.6%, and so forth.
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XRP continues to consolidate with low volatility across its BTC and USDT pairs. Price action is tight, holding above major support but struggling to gain bullish momentum.
By Edris Derakhshi
XRP Price Analysis: The USDT Chart
XRP is holding just above the $2.00 support zone and the 200-day moving average, located around the same price mark.
The $2.00 level has acted as key demand throughout April, with multiple wicks into that zone being bought up quickly. However, bullish follow-through has been weak, and the price remains compressed between $2.00 and the $2.40–$2.60 resistance zone.
Momentum is neutral as the RSI hovers around the 50 mark. Bulls need to reclaim $2.60 to confirm strength and open the way toward the $3.00–$3.10 resistance. If the 200 DMA fails to hold, the next major supports are at $1.40 and $1.
XRP Price Analysis: The BTC Paired Chart
XRP is still in a downtrend against BTC, with a clear sequence of lower highs since the peak in January. The price is now just above the 2,400 SAT level but well below the 2,800 SAT resistance zone.
The 200 DMA near 2,100 remains a key level to watch if the decline continues.
This pair continues to show relative weakness, and reclaiming 2,800 SAT is critical to shift the short-term trend. As long as XRP/BTC fails to break above that structure, upside will likely remain capped.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
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