Over the past few years, Wyoming, a landlocked state in the U.S. Mountain West, has embarked on a journey to become a blockchain pioneer.
With a bold vision of creating an attractive cryptocurrency and blockchain ecosystem, the state’s crypto-friendly laws have positioned Wyoming as the most welcoming state in the U.S. for blockchain companies and innovators. The pro-crypto stance of recent administrations has solidified the state’s status as a model for how jurisdictions can build their economies.
Wyoming’s aim to be a beacon of crypto innovation is one reason I chose to make it my home. My family lives in Gillette, and Wyoming has become the center of my work life. I cherish this place, from my thriving bison ranch in Wheatland to our family’s state-of-the-art healthcare clinic in Gillette, which employs hundreds.
While my commitment to Wyoming runs deep, I am now concerned about the direction the state is taking. Recent events surrounding the state-backed stablecoin initiative have raised serious questions about transparency and accountability in public procurement processes. If Wyoming wants to lead in blockchain – or any emerging technology – fairness and openness must be at the core of its selection processes. With so much at stake, I am addressing this issue head-on by building a framework that sets a standard for local leadership and serves as a model for pro-crypto policies at the national level.
The Promise of Wyoming’s Stablecoin Initiative
The state-backed stablecoin initiative, announced two years ago, was intended to showcase how blockchain could revolutionize the state’s finances and set an exemplary model for other states and nations to follow. My company, Input Output, the driving force behind blockchain Cardano, was proud to support this effort, fostering an open and democratic approach with the Wyoming Stablecoin Commission (WSC) and its Blockchain Selection Working Group (WG), which oversaw the entire RFP process for vendors.
Over 18 months, we worked collaboratively, contributing to discussions on compliance, issuance, redemption processes, and technological standards. The goal was clear: ensure Wyoming’s stablecoin initiative would succeed – not just for the state but as a model for the rest of the world.
Biased Procurement Process
Unfortunately, the stablecoin procurement process did not reflect Wyoming’s principles of openness and innovation. Several aspects, including a lack of transparency, technical requirements that did not align with established frameworks, and blatant bias, undermined the entire effort, resulting in the unfair disqualification of innovative platforms like Cardano, XRP, Bitcoin, Hashgraph, Algorand, and ICP.
From the onset, the decision-making process was conducted behind closed doors, without opportunities for public input. The WSC and WG essentially developed criteria favoring established solutions, such as Ethereum or Solana, neglecting the merits of newer players in the market.
The Wyoming Stablecoin Commission consistently prioritized Ethereum, rendering the whole procurement process ineffective. Videos reveal Wyoming Governor Mark Gordon and Anthony Apollo, Executive Director at WSC, implying a preference for Ethereum over other blockchain platforms. In a Stable Token Commission meeting, Apollo explicitly stated his personal preference for Ethereum and Polygon, highlighting potential conflicts of interest, given his ties to the Ethereum ecosystem.
Furthermore, the technical criteria for evaluation had no established basis in existing regulatory frameworks, impeding Cardano and other vendors’ ability to compete effectively. For instance, despite meeting four out of five criteria, Cardano was disqualified for failing the asset “freeze and seize” test, a capability not mandated by either federal regulations or Wyoming State law.
Former Deputy Secretary of State Karen L. Wheeler underscored these concerns, stating: “For a year, public meeting materials explicitly stated that the RFP process would be open to all. However, what began as a process of transparency took a troubling turn – shifting to a closed-door selection controlled by a subcommittee. Instead of fostering fair competition, vendors were arbitrarily chosen based solely on publicly available information without the opportunity to demonstrate their capabilities. This not only undermined fairness but also lost a critical opportunity for Wyoming to reinforce its leadership in blockchain innovation.”
The Wyoming Integrity PAC
The entire procurement process has prompted me to take action. This year, I will launch the Wyoming Integrity Political Action Committee (PAC). This initiative aims to rectify the missteps of the stablecoin project, focusing on building a foundation for ethical governance that secures Wyoming’s future as a leader in emerging technologies from quantum computing to artificial intelligence.
The Wyoming Integrity PAC will work towards reforming procurement processes in Wyoming to ensure they are transparent, fair, and inclusive by supporting candidates committed to these goals. Our focus will be on three key pillars:
1. Transparency: Advocating for open decision-making processes that involve public input and scrutiny.
2. Fairness through open collaboration: Ensuring that all innovators and businesses have an equal opportunity to compete and contribute, regardless of their connections or affiliations.
3. Ethical innovation: Establishing Wyoming as a global example of governance that supports technological progress while upholding the highest standards of integrity. These principles are not just ideals; they are necessities. Without them, Wyoming risks losing the trust and investment of the blockchain community and beyond.
Future of Leadership and Trust
The Wyoming Integrity PAC will focus on addressing past mistakes and shaping a future where Wyoming can excel in blockchain and other emerging technologies. Our goal is to create an environment where great ideas can thrive, innovators feel welcomed, and trust is a cornerstone of governance. Additionally, I hope the PAC will set an example for future federal crypto projects.
This initiative is not solely about technology; it encompasses the entrepreneurs, developers, and workers who bring innovation to life. It’s also about the residents of Wyoming who deserve to see their state flourish as a leader in the digital economy.
I am committed to this long journey and will not give up. Wyoming’s aspiration to become a central hub for blockchain is worth fighting for, both for the state and the wider industry. Together, we can build a state promoting fairness, innovation, and opportunity for everyone. Let’s level the playing field, allow the best ideas to emerge, and may the best technology prevail.
