Crypto Law Profile
Wyoming law creating a state stable token commission and authorizing U.S. dollar-redeemable stable tokens backed through statutory trust, reserve, liquidity, redemption, procurement, and liability provisions.
The Wyoming Stable Token Act is a Wyoming state statute codified at W.S. 40-31-101 through 40-31-110. It created the Wyoming Stable Token Commission and authorizes the commission to issue Wyoming stable tokens, subject to trust, reserve, redemption, procurement and liability provisions. The Act became law without the governor's signature on March 17, 2023, and is in force as amended by 2024 SF0052 and 2026 SF0021.
The Act defines a Wyoming stable token as a virtual currency representative of and redeemable for one U.S. dollar held in trust by the state. The statute provides that tokens are issued only in exchange for U.S. dollars and directs the commission to establish management and redemption procedures. The current codified law also authorizes the commission to determine token types, supply, availability, issuance standards, and custody or management arrangements with service providers.
The Wyoming Stable Token Commission is established as a body politic and corporate instrumentality of the state. Its board includes state officials or designees, and the Act gives the commission authority to issue tokens, manage token-related assets, contract with financial institutions and technology service providers, seek federal guidance, oversee audits, and provide a pre-issuance report before publicly issuing fully reserved tokens.
The current statute requires the commission to deposit funds from token issuance into a Wyoming stable token trust account and maintain not less than 100% of the notional value of outstanding tokens in that account. Permitted investments include cash, U.S. Treasury securities with maturities of 365 days or less, Treasury repurchase agreements with maturities of 30 days or less, and investments that comply with 17 C.F.R. part 270.2a-7.
The 2026 amendments added a statutory liquidity account structure. After operational costs, administrative-account funds may be transferred to maintain a liquidity account equal to 2% of outstanding token notional value. Excess funds may be retained for savings and, after quarterly review, distributed to Wyoming's public school foundation program account under the statute.
The Act states that one token may be redeemed for one U.S. dollar on demand, subject to statutory limitations and the amount of assets available in the trust account after expenses. Purchase documents must notify holders that Wyoming stable tokens are not insured by the state and that principal is not guaranteed beyond the notional value of the trust account. The statute also provides that tokens are special obligations payable solely from the trust fund, not general obligations of Wyoming, and not backed by the state's full faith and credit.
The state announced a mainnet launch of the Frontier Stable Token, or FRNT, on August 19, 2025, describing it as fully backed by U.S. dollars and short-duration Treasuries and deployed across Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana. As of June 3, 2026, Wyoming also has an active rulemaking item: the public comment period for amended Reserves Management and Token Management rules opened May 29, 2026 and closes July 13, 2026 at 5:00 p.m. Mountain Time.
Official materials include the current Wyoming Statutes Title 40, the 2023 Session Laws, the 2024 SF0052 amendments, the 2026 SF0021 amendments, and the commission's rulemaking notice.
Creates the Wyoming Stable Token Commission as a body politic, corporate instrumentality and state instrumentality with token issuance and management authority.
Defines a Wyoming stable token as virtual currency representative of and redeemable for one U.S. dollar held in trust and issued only in exchange for U.S. dollars.
Requires the trust account to hold at least 100% of outstanding token notional value, with permitted investments limited by statute.
Creates a liquidity account to support redemption needs and maintain 2% of outstanding token notional value outside the statutory trust account.
Provides one-dollar redemption mechanics subject to statutory limits and requires notice that tokens are not state-insured or guaranteed beyond the trust account.
States that stable tokens are special obligations payable solely from the trust fund, not general obligations or full-faith-and-credit obligations of Wyoming.
Adds competitive bidding requirements for token-related procurements, with a narrow exception for single-vendor exclusive rights.
Wyoming stable token legislation was introduced during the 2023 General Session.
SF0127 became law without signature and was assigned 2023 Session Laws Chapter 185.
SF0052 amended investment, contracting, reporting and procurement provisions.
Wyoming announced mainnet launch of the Frontier Stable Token across seven blockchains.
SF0021 amended reserve, liquidity, donation, distribution and interstate-agreement provisions.
Public comment opened on amended Reserves Management and Token Management rules.
Consumers, Financial institutions, Financial service providers, Token holders
Fiat-backed tokens, Stablecoins, Virtual currency
Updated through 2026 SF0021 amendments. This profile summarizes the statutory structure only and is not legal, tax, investment, trading or compliance advice.
