In this latest episode, co-host Eleanor Terrett and I spoke with Debra Brookes from the Wyoming Stable Token Commission about a significant state-level crypto initiative in America. Brookes, a former federal prosecutor who transitioned to the New York Department of Financial Services in 2013, brings extensive experience in cryptocurrency regulation to her current role. On August 20, 2025, Wyoming will make history as the first state to issue its own stable token.
Wyoming's Blockchain Foundation
This landmark launch builds on Wyoming's pioneering blockchain leadership that I explored in previous episodes with Wyoming Senate Minority Leader Chris Rothfuss (Article HERE). Wyoming has passed over 40 pieces of blockchain-related legislation, establishing a "regulate to enable" philosophy that has attracted companies nationwide while creating millions in tax revenue from crypto company operations. The state's approach includes establishing Special Purpose Depository Institutions (SPDIs), legal frameworks for DAOs, and digital asset property laws that influenced the Uniform Law Commission.
Full Interview:
Technical Framework and Implementation
Brookes studied regulatory approaches from Singapore, the European Union's Markets in Crypto-Assets (MiCA) regulation, and other jurisdictions to extract best practices for developing the The Wyoming Stable Token (WYST). The WYST which is designed as a dollar-pegged, fully reserved settlement token for payments, governed by state law and focused on financial innovation and public benefit, specifically generating revenue for schools. The WYST is backed by US treasuries, cash, and repurchase agreements, with over-collateralization of at least 102% for enhanced stability. The commission partnered with LayerZero for development and tested Alpha WYST across multiple testnets.
The use cases should be wide-ranging, with the intention of making WYST a voluntary alternative payment mechanism. Wyoming citizens could pay local taxes with WYST, shop at local retailers, or participate in DeFi protocols globally.
Why WYST Is Not a CBDC
During our discussion, we explored the distinction between the Wyoming Stable Token and a Central Bank Digital Currency (CBDC)—a crucial difference for understanding Wyoming's approach. The Wyoming Stable Token Commission has specifically rejected the notion that WYST is a CBDC, asserting that only a digital instrument issued by a central bank, such as the U.S. Federal Reserve, with direct monetary policy control fits that definition. WYST is not a CBDC because it is issued by a state government, not by any central bank, and does not involve central bank oversight of users' accounts or authority over national monetary policy.
WYST vs. Private Stablecoins and CBDCs
This positions WYST more akin to privately issued stablecoins like USDC or Tether, which are fiat-pegged digital tokens operating on public blockchains, but with the key difference that WYST is backed and issued by the state to provide a public-sector alternative without centralized control over transactions. Unlike CBDCs, which could represent government-controlled programmable money with surveillance capabilities to track transactions and restrict purchases, WYST functions as a fully voluntary, fiat-backed payment mechanism designed to act like cash, preserving the freedom and privacy that many fear CBDCs could undermine.
The Wyoming Stable Token Act demonstrates how states can lead in emerging technologies rather than waiting for federal clarity. Wyoming continues building practical solutions while fighting legal battles with federal regulators over institutions like Custodia Bank.
Wyoming's consistent approach – from Rothfuss's legislative leadership to Brookes's operational expertise – shows how sustained commitment creates real-world results. As the August 20th launch approaches, Wyoming demonstrates once again that the most important innovations often happen at the state level. With its multi-chain testing, robust reserve structure, and educational benefits, WYST may prove to be the gold standard for state-issued digital currencies.
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