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Stablecoin bill passes in Northern Marianas as House overrides veto

The Pacific US territory of the Northern Mariana Islands has passed a bill allowing its small constituent island of Tinian to launch a stablecoin, overriding an earlier veto by the territory’s governor.

The 20-member Northern Mariana Islands House voted 14-2 to undo Governor Arnold Palacios’ April 11 veto of the bill, which allows the Tinian local government to issue licenses to internet casinos and includes a provision for the Tinian treasurer to issue, manage and redeem a “Tinian Stable Token.” 

The territory’s nine-member Senate had revived the bill on May 9, voting 7-1 in a two-thirds majority to override the veto, which then needed a two-thirds majority in the House to pass.

Stablecoin bill passes in Northern Marianas as House overrides veto
Representative Marissa Flores (top left) had urged for “thoughtful deliberation” on the internet gaming and stablecoin bill. Source: YouTube

Originally, a four-member Tinian delegation to the Marianas legislature had unanimously passed the bill to Governor Palacios on March 12.

It may put the Tinian government in the lead to be the first US public entity to issue a stablecoin, which it must do before July if it’s to beat the state of Wyoming government, which is aiming to issue a stablecoin by then.

Tinian has just over 2,000 residents and a largely tourism-based economy. Its local government, the Municipality of Tinian and Aguiguan, is one of four municipalities in the Commonwealth of the Northern Mariana Islands, a US territory in the Pacific Ocean north of Guam.

Governor Palacios said in a letter that he vetoed the bill as it “presents several legal issues and may be unconstitutional,” would regulate an activity that could not “be clearly restricted” to Tinian and that it lacked needed enforcement measures to counter illegal gambling.

The stablecoin is called the Marianas US Dollar (MUSD) and will be backed by cash and US Treasury bills held in reserve by the Tinian Municipal Treasury, according to statements shared with Cointelegraph in March.

The Tinian government chose local tech services firm Marianas Rai Corporation as the exclusive infrastructure provider for MUSD, which will be launched on the eCash blockchain, a network that rebranded from Bitcoin Cash ABC in 2021 and is a fork of Bitcoin Cash, a blockchain forked from Bitcoin.

A Marianas Rai Corp. spokesperson did not comment beyond telling Cointelegraph the company would announce more on MUSD on May 19.

“Bitter pill to swallow”

Before the vote, House lawmakers heard from the public and discussed overturning Governor Palacios’ veto before they voted it through, with independent House floor leader Marissa Flores airing concerns over the bill.

Marianas Rai Corp. co-founder and technology chief Vin Armani had urged lawmakers to undo the veto, saying the bill would “attract billions of dollars of investment and tax revenue” from the crypto industry without the government having to pitch in.

Clyde Norita, a Marianas Rai Corp. director and local legal cannabis mogul, told the House that the local economy was “dying out” and the bill would allow business in the region “without affecting our culture, without affecting our environment, without affecting our immigration status.”

Representative Flores, who voted against the override, said, “Every time we talk about casinos, there’s always some kind of bitter pill to swallow.”

Related: Stablecoin regulation ‘next catalyst’ for crypto industry — Aptos head 

“It is true, we are in dire need of money, but what I don’t like is when we are desperate, and we are now forced to make a decision because we are desperate once again,” she added. “Every time we’re desperate, it always seems that we come back to casinos.”

“I don’t like to be pushed to a corner to make a decision based on fear,” Flores said.

Others were more supportive of the measure, with Republican Representative Patrick San Nicolas, a Tinian delegation member who initially voted on the bill, saying it would help pull the region out of “a deep economic crisis.”

“We need this legislation to unlock our potential,” he added. “This bill does not depend on tourists or federal subsidies — it builds a digital industry generating revenue from a licensed jurisdiction.”

Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight 

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Cryptojacker gets 1 year prison after admitting to $3.5M fraud

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Cryptojacker gets 1 year prison after admitting to .5M fraud

Cryptojacker gets 1 year prison after admitting to .5M fraud

Charles O. Parks III, who admitted to misusing $3.5 million worth of resources from two cloud computing providers to mine crypto, was sentenced to one year and one day in prison.

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How a chaotic 24 hours unfolded ahead of Trump and Zelenskyy's crunch White House talks

If there’s one thing the past 24 hours has confirmed, it’s that it’s still Donald Trump’s world, and we’re all just living in it.

In the aftermath of the Alaska meeting, the US president’s deal-making skills came under question when he seemingly walked away empty-handed.

But it was clear he had retained his ability to catch everyone off guard, as a meeting between him and President Volodymyr Zelenskyy unexpectedly became a last-minute White House peace summit.

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The invitation to European leaders drifted out, and within hours, the cast list had grown to include six more, as world leaders dropped everything to fit in with Mr Trump’s unpredictable timetable.

There were signs of disorganisation behind the scenes.

When the British Prime Minister’s spokesman was asked who the invite had come from – the White House or the Ukrainian president – they replied: “A bit of both.”

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Meanwhile, the meeting of the coalition of the willing – a Starmer and Macron-led group of Ukraine’s European allies – had a nervous feel to it as members resolved to stand firm with Ukraine – even if it puts them at odds with the US.

At times, it sounded like they were trying to convince themselves they could do it.

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Sir Keir Starmer and his allies have no choice but to keep their Trump criticisms implicit

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Sir Keir Starmer and his allies have no choice but to keep their Trump criticisms implicit

Sir Keir Starmer is straining his diplomatic sinews to simultaneously praise Donald Trump’s efforts to end the war in Ukraine, while repeating calls for a completely different approach – one which ends the cosy bonhomie with Vladimir Putin, threatens the Russians with sanctions, and puts the Ukrainians back centre stage.

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Major shift as Trump backs peace deal over ceasefire; follow latest

Donald Trump‘s public dismissal of the Europeans’ previous calls for a ceasefire – after his tete-a-tete with Putin – has only highlighted divisions.

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Donald Trump and Vladimir Putin after their private meeting in Alaska. Pic: Reuters/ Kevin Lamarque
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Donald Trump and Vladimir Putin after their private meeting in Alaska. Pic: Reuters/ Kevin Lamarque

Even as they attempt to ramp up their own military preparedness to help reinforce any future peace deal, they need President Trump to lead the way in trying to force President Putin to the negotiating table – and to back up any agreement with the threat of American firepower.

For Downing Street, President Trump’s new willingness to contribute to any future security guarantee is a significant step, which Starmer claims “will be crucial in deterring Putin from coming back for more”.

It’s a commitment the prime minister has been campaigning for for months, a caveat to all the grand plans drawn up by the so-called Coalition of the Willing.

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Of course, the promise of security guarantees only means anything if a peace deal is actually reached.

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Fears of Zelenskyy being painted as warmonger

There is clearly real concern in European capitals following the US president’s comments that the onus is now on Volodymyr Zelenskyy to ‘do a deal’, that the Ukrainians will come under growing pressure to make concessions to the Russians.

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“He’ll paint him as the warmonger, when in fact everybody knows it’s President Putin.”

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They’ll all be hoping to avoid a repeat of that on Monday.

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