Chapter 1

General Provisions

Section 1.                Authority.

(a)              These rules are promulgated by the Wyoming Stable Token Commission, herein referred to as the Commission, in accordance with W.S. 40-31-105(b).

Section 2.                Purpose

(a)              These rules are adopted to safeguard the Reserves of the Wyoming Stable Token, ensuring those assets are sufficiently liquid and readily available to meet financial obligations in a manner consistent with W.S. 40-31-104 to W.S. 40-31-109.  

Section 3.                Definitions.

(a)              In addition to the definitions provided in W.S. 40-31-102 and W.S. 34-29-101, the following definitions are used in these rules:

(i)                "Business Day" means any weekday (Monday to Friday) between 9 a.m. to 5 p.m. in the United States, Mountain Time that excludes weekends (Saturday and Sunday) and federal holidays, when normal business operation occurs.

(ii)              "Commission Staff" means a senior resource retained by the Commission to support the Director, including but not limited to, the Chief Financial Officer, Chief Information and Security Officer, Chief Risk and Compliance Officer, or any other senior officer duly appointed by the Commission.

(iii)           "Financial Institution" as defined at W.S. 40-31-102(iv) is recognized to include the following functions:

(A)            "Investment Manager" means the entity engaged by the Commission for the purpose of receiving United States Dollars and directing their investment into Permitted Investments, in accordance with an investment policy statement ("IPS").

(B)             "Custodian" means the entity engaged by the Commission for the custody and safeguarding of Reserves.

(iv)            "Investment Earnings," as referenced in W.S. 40-31-106(a), means proceeds from investments, including but not limited to, interest income, dividends earned, and other investment gains, whether realized or unrealized, minus fees assessed by the Financial Institution(s).

(v)              "Issuance Request" means a request received from a Licensed Service Provider by the Commission, or other representative authorized by the Commission, to purchase an amount of WYST for its notional value, in United States dollars, consistent with Chapter 2 of this rule.

(vi)            "Issue" or "Issuance" means the process by which the Commission, or other representative authorized by the Commission, distributes WYST to a Licensed Service Provider in exchange for the amount of United States Dollars received following an Issuance Request.

(vii)         "Licensed Service Provider" means any entity which has executed an agreement with the Commission to offer or support the purchase and sale of WYST on its platform or application, following a compliance review that includes at a minimum the successful completion of "Know Your Business" checks or other compliance requirements deemed necessary by the Commission.

(viii)       "Liquidity Fund Account" means an account or accounts segregated from the Trust Account(s), maintained at a Financial Institution(s), that holds Investment Earnings in excess of those required to maintain one hundred percent (100%) of the notional value of WYST in the Trust Account(s), to manage the variability or fluctuation of WYST in Circulation, and maintain compliance with W.S. 40-31-106(b).

(ix)            "Permitted Investments" means the assets in which the Commission, Financial Institution(s), or other representative authorized by the Commission, can invest per W.S. 40-31-106(a), defined as cash, United States treasury securities with a maturity of three hundred sixty-five (365) days or less or United States treasury security repurchase agreements with a term of thirty (30) days or less.

(x)              "Redeem" or "Redemption" means the process by which a Licensed Service Provider returns WYST to the Commission, or other representative authorized by the Commission, in exchange for the notional value of WYST, denominated in United States Dollars, on the date of the Redemption Request.

(xi)            "Redemption Request" means a request received from a Licensed Service Provider by the Commission, or other recipient as authorized by the Commission, to redeem an amount of WYST for its notional value, in United States Dollars, consistent with Chapter 4 of this rule.

(xii)         "Repurchase Agreement" means a contractual agreement to sell U.S. Treasury securities to another party with a simultaneous agreement to repurchase the same securities at a predetermined price at a specified time in the future.

(xiii)       "Reserves" means the net amount of funds, as Permitted Investments assessed at market value, held in the Trust Account(s) and Liquidity Fund Account(s).

(xiv)        "State" means any state of the United States excluding Wyoming, any territory or insular possession of the United States, or the District of Columbia.

(xv)          "Token Holder" means any person or entity who is the lawful owner of WYST.

(xvi)        "Trust Account" means an account, or accounts, held in a Financial Institution(s) for the purpose of holding Permitted Investments on behalf of a Token Holder. The Trust Account(s) excludes monies in excess of the notional value of WYST.

(xvii)     "Unavailable," as it relates to a Licensed Service Provider, means:

(A)            The Licensed Service Provider commences a voluntary case under Title 11 of the United States Code or the corresponding provisions of any successor laws;

(B)             Anyone commences an involuntary case against the Licensed Service Provider under Title 11 of the United States Code or the corresponding provisions of any successor laws and either:

(I)                The case is not dismissed by midnight at the end of the sixtieth (60th) day after commencement; or 

(II)              The court before which the case is pending issues an order for relief or similar order approving the case;

(C)             A court of competent jurisdiction appoints, or the Licensed Service Provider makes an assignment of all or substantially all of its assets to, a custodian (as that term is defined in Title 11 of the United States Code or the corresponding provisions of any successor laws) for the Licensed Service Provider or all or substantially all of its assets;

(D)            The Licensed Service Provider fails generally to pay its debts as they become due (unless those debts are subject to a good-faith dispute as to liability or amount) or acknowledges in writing that it is unable to do so; or

(E)             The Licensed Service Provider is permanently enjoined by a U.S. authorized agency, U.S. court of competent jurisdiction, or other governmental authority from carrying on business in the United States.

(F)              For clarity, the term "Unavailable" specifically excludes any technical unavailability of the Licensed Service Provider, including periods of platform maintenance services.

(xviii)   "Wyoming Stable Token" or "WYST" means a virtual currency, pursuant to W.S. 34-29-101, et seq. and W.S. 40-31-101, et seq., Issued by the Commission on a blockchain network or other distributed ledger, representing a right to redeem United States Dollars confirmed to be received by the Commission, or other representative(s) authorized by the Commission, in the Trust Account(s).

(xix)        "Wyoming Stable Token Administration Account" or "WYST Administration Account" means an account or accounts held in a Financial Institution(s) with the purpose of paying for the operational expenses of the Commission, and retaining funds for future expenditures, pursuant to W.S. 40-31-106(c). The WYST Administration Account shall be funded with Investment Earnings.

(xx)          "WYST in Circulation" means the total WYST supply that the Commission has a special obligation to redeem, on blockchains approved by the Commission.

Section 4.                Limited Delegation of Fiscal Authority.

(a)              The Commission hereby agrees to delegate to the Director limited authority to:

(i)                Create, approve, amend, and maintain internal policies, processes, and procedures for the Director and Commission Staff to conduct the daily operations of the agency, manage agency resources, and manage WYST and its supporting technical or financial infrastructure;

(ii)              Enter into, renegotiate, or terminate written agreements with any service provider, including but not limited to Licensed Service Providers, Token Holders previously authorized by the Commission, and Financial Institutions, provided they are in conformance with the Commission's procurement rules;

(iii)           Create, approve, implement, amend, and maintain the Commission's website, marketing materials, and other public disclosures;

(iv)            Create, implement, amend, and maintain the terms and conditions and privacy policy of WYST, following initial approval by the Commission by a majority vote;

(v)              Open, close, manage, and transfer monies from Trust Account(s), Liquidity Fund Account(s), or WYST Administration Account(s), in accordance with control procedures established by the Commission;

(vi)            Initiate deposits, withdrawals, payments, or transfer of funds to or from a Trust Account(s), Liquidity Fund Account(s), or WYST Administration Account(s), in accordance with control procedures established by the Commission;

(vii)         Generate, operate, and secure digital wallet addresses and cryptographic keys on behalf of the Commission, or state of Wyoming agencies;

(viii)       Segregate any digital assets, as defined at W.S. 34-29-101(a)(i), sent by unknown parties to digital wallets maintained by the Commission, and liquidate said digital assets, as appropriate and practicable, into United States Dollars and migrate that cash, net of any liquidation fees, to the Liquidity Fund Account(s);

(ix)            Take any actions necessary or advisable to ensure the orderly Issuance or Redemption of WYST.

(b)              The Director may delegate any and all of the responsibilities listed in subsection (a) above, in whole in part, to one (1) or more members of the Commission Staff following written communication to the Commission with twenty-four (24) hours or more of notice.

(c)              Any authority granted in this Section may be limited by the Commission pursuant to control procedures established by the Commission to ensure appropriate safeguards for Commission assets and assets held in the Trust Account(s), Liquidity Funds Accounts(s), or WYST Administration Account(s).

(d)              Any actions taken under the delegated authority within this section shall be reported to the Commission at its next regular meeting.