Chapter 1

General Provisions

Section 1.                Authority. These rules are promulgated by the Wyoming Stable Token Commission, herein referred to as the Commission, in accordance with W.S. 40-31-105(a)-(b).

Section 2.                Purpose. These rules are adopted to safeguard the management of the Wyoming Stable Token ("WYST"), in a manner consistent with W.S. 40-31-104 to W.S. 40-31-109.

Section 3.                Definitions. In addition to the definitions provided in W.S. 17-32-102; 34-29-101; 34-29-106; and 40-31-102, the following definitions are used in these rules:

(a)              "Burn" or "Burning" means the process of permanently removing WYST in Circulation from a Blockchain network approved by the Commission.

(b)              "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.

(c)              "Final Lawful Legal Directive" means a final judgment issued by a judicial, administrative, or regulatory body having jurisdiction over the Commission.

(d)              "Freeze" or "Freezing" means temporarily blocking or denying the ability of a Digital Asset wallet address to send or receive WYST on any Blockchain network approved by the Commission.

(e)              "Gas Fee" means a Blockchain network transaction fee, typically paid in the native token on a Blockchain network.

(f)               "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.

(g)              "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.

(h)              "Key Holder" means any of the Commissioners, Director, Commission Staff, or employees of the Stable Token Commission, or other personnel employed by the Wyoming State government who has been authorized by the Commission, to custody and operate private keys as part of a Multi-Signature or Multi-Party Computation digital wallet.

(i)                "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.

(j)                "Mint" or "Minting" means generating new WYST on a Blockchain network approved by the Commission.

(k)              "Multi-Party Computation" or "MPC" means a subfield of cryptography with the goal of creating methods for parties to jointly compute a function over their inputs while keeping those inputs private.

(l)                "Multi-Signature" or "Multi-Sig" means a digital wallet configuration that requires two or more independent private keys, held by authorized parties, to approve and authorize a single transaction. Multi-Signature wallets are used to enhance operational security by distributing signing authority and requiring multiple approvals before execution.

(m)            "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), in either 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.

(n)              "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.

(o)              "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.

(p)              "Seize" or "Seizure" means the permanent confiscation of WYST by the Commission following a Final Lawful Legal Directive directing such confiscation.

(q)              "Temporary Lawful Legal Directive" means a temporary or otherwise time-limited official and binding proclamation, such as temporary restraining orders, preliminary injunctions, or cease and desist orders, issued by a judicial body having jurisdiction over the Commission.

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

(s)               "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 the WYST.

(t)                "Unsolicited Assets" means digital assets, coins, tokens, or other cryptographically-secured property that are transferred by third parties to the Commission's publicly-disclosed digital wallet addresses without any prior request, solicitation, agreement, or intent by the Commission to receive them. These assets originate from external digital wallets or exchanges and are recorded on the Blockchain as confirmed transactions.

(u)              "Wyoming Stable Token" or "WYST" means the 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).

(v)              "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 Technical Authority.

(a)              The Commission delegates to the Director limited authority to, in accordance with control procedures established by the Commission:

(i)                Manage the supply and transfer of WYST;

(ii)              Onboard Licensed Service Providers, Token Holders, or other authenticated partners to technical infrastructure maintained by the Commission;

(iii)           Offer a Gas Fee subsidy as a means of facilitating distribution of WYST; and

(iv)            Purchase and manage Digital Assets for the purpose of paying Blockchain network Gas Fees, and engage with vendors for the management of Gas Fees:

(A)            For the purposes of deploying smart contracts and effectuating any on-chain transaction(s) on behalf of the Commission; and

(B)             Facilitating on-chain transactions on behalf of Token Holders.

(b)              The Director may delegate any and all of the responsibilities listed in subsection 4(a) above, in whole in part, to one (1) or more members of the Commission Staff following written communication to the Commission with no less than twenty-four (24) hours advance notice.

(c)              Any authority granted in this Section of this Chapter may be limited by the Commission pursuant to control procedures established by the Commission to ensure appropriate safeguards for Commission assets and WYST.

(d)              Any authority granted in this Section of this Chapter may be altered, amended, or rescinded by the Commission at any time by majority vote of the Commission.

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