Wyoming is close to becoming the first U.S. state to issue a stablecoin named the Wyoming Stable Token (WYST). While it won't initially offer yield, there are plans to enable this feature later, with funding aimed at supporting the state's school system. The introduction comes amid concerns regarding the recent GENIUS Act, which requires financial institutions to follow strict transaction protocols. Advocates of WYST argue it has the potential to operate outside some federal restrictions due to its state backing. Critics, however, view the act as a slippery slope towards more centralized digital currency control, suggesting that WYST could resemble a state-backed Central Bank Digital Currency (CBDC). The token is set to debut at the Wyoming Blockchain Symposium in August and could operate on various blockchain protocols such as Ethereum or Avalanche. With this move, lawmakers aim to enhance crypto participation amid fears of losing financial sovereignty while navigating federal regulations.

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