Northern Mariana Islands Senate backs $2 million stablecoin bill

The Senate of the Northern Mariana Islands voted 7-1 on May 9, 2025, to override Governor Arnold Palacios’ veto of a bill allowing the issuance of a stablecoin and licenses for internet casinos in Tinian.

The bill includes provisions for the Tinian treasurer to issue, manage, and redeem a US dollar–pegged stablecoin called the Marianas US Dollar (MUSD).

The measure now moves to the 20-member House, which must pass it with a two-thirds majority to become law.

If approved, Tinian could become the first US public entity to issue a stablecoin, competing with Wyoming’s planned stablecoin launch by July.

Tinian is a municipality in the Northern Mariana Islands, a US Pacific territory with a population of just over 2,000 residents, where tourism is a key economic driver.

Governor Palacios vetoed the bill in April, citing legal concerns and potential constitutional issues, warning that regulating gambling activities might be difficult to confine solely to Tinian.

Democratic Senator Celina Babauta, the sole senator opposing the override, expressed concerns about enforcement capacity and federal compliance.

“We are restricted by federal statutes and must comply with that,” she stated.

“I don’t believe that gambling is the only thing that we can be looking forward to every single time there’s an investor that comes in,” said Babauta, also questioning reliance on gambling as an economic strategy.

In contrast, Republican Senator Karl King-Nabors, co-author of the bill, argued the stablecoin would enhance transparency and oversight of online gaming through software tracking.

“This legislation stands at a time where we’re going through so much economic hardships,” King-Nabors said, emphasising the need for economic diversification beyond traditional industries.

The MUSD stablecoin will be fully backed by cash and US Treasury bills held by the Tinian Municipal Treasury and issued on the eCash blockchain.

Marianas Rai Corporation, based in Saipan, is designated as the exclusive provider for the stablecoin’s infrastructure.

Vin Armani, co-founder of Marianas Rai Corp., noted the company remains “poised to act quickly” pending legislative approval and ongoing discussions with partners.

The bill’s progress occurs amid stalled stablecoin legislation at the federal level, including the GENIUS and STABLE Acts, which lost momentum partly due to political concerns involving former President Donald Trump’s crypto interests.

“We struggle with trying to find creative and innovative ways to diversify our economy and our industries,” according to Senator Babauta, highlighting the challenges facing the territory’s economic development.