TechFlow news, April 15 — According to Cointelegraph, Arnold Palacios, the governor of the Northern Mariana Islands, has vetoed a bill that would have allowed local governments in the U.S. territory to issue stablecoins. In a letter dated April 11, Palacios stated the bill raised multiple legal concerns and could be unconstitutional.
The bill would have enabled Tinian, an island with just over 2,000 residents, to issue a stablecoin called MUSD (Marianas US Dollar), fully backed by cash and U.S. Treasury securities held in the Tinian municipal treasury. The bill had previously been unanimously approved by the Tinian delegation on March 12. If enacted, the Tinian government would have become the first U.S. government entity to launch a stablecoin, ahead of Wyoming, which plans to roll out its own stablecoin in July.
