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. With the pro-crypto stance of the Trump administration, the state has solidified its 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 love this place, from my thriving bison ranch in Wheatland to our family’s state-of-the-art healthcare clinic in Gillette, alongside hundreds of employees.
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 setting an example for other states and nations to follow. My company, Input Output, the driving force behind blockchain Cardano, was proud to support this effort and actively fostered 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 with both parties, contributing to discussions on compliance, issuance, redemption processes, and technological standards. The goal was clear: to 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 procurement effort, resulting in the unfair disqualification of Cardano, XRP, Bitcoin, Hashgraph, Algorand, and ICP.
From the onset, the decision-making process was conducted behind closed doors, with no opportunity for public input. Without outside influence, WSC and the WG essentially developed criteria that favored existing solutions, such as Ethereum or Solana, without considering the merits of newer players on the market.
Considering the above, it was no surprise that the Wyoming Stablecoin Commission always had Ethereum as their number-one choice, rendering the entire procurement process inconsequential. Videos (which you can watch here and here) show Wyoming Governor Mark Gordon and Anthony Apollo, Executive Director at WSC, heavily implying that Ethereum would get priority over other blockchain platforms in the bid.
In a Stable Token Commission meeting, Apollo explicitly stated that his personal preference is Ethereum and Polygon. Meanwhile, State Treasurer Curt Meier has also publicly supported Ethereum. It is worth noting that Apollo is strongly tied to Ethereum as he was the Co-Founder of ConsenSys, the software development firm supporting the growth of the Ethereum ecosystem — a fact that only underscores the inherent bias among the key stakeholders.
Moreover, the technical criteria requirements in the evaluation methodology had no established basis in existing regulatory frameworks and so further hampered Cardano and other blockchain vendors’ efforts to compete for the contract. For example, despite passing four out of five requirements for the Wyoming Stablecoin project, Cardano was disqualified because it failed the asset “freeze and seize” test.
However, neither federal regulations nor Wyoming State law mandates the functionality to “freeze and seize tokens.” Even with that said, Cardano, through its smart contract framework, native token, or even its on-chain functionality, can still do this – a fact WG admitted themselves to in an external email to Cardano – yet still failed to consider.
If, after all of the above, it is still not convincing that WG failed to carry out careful and considered due diligence throughout the selection process, and failed to consider the federal regulatory and technical requirements for stablecoins, then comments from Karen L. Wheeler, Wyoming’s former Deputy Secretary of State, should dispel any doubts:
“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 and inclusivity 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 with no opportunity to demonstrate their ability to meet key criteria. 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 left me with a bad taste, and I realized I needed to address these failings in state-sponsored blockchain procurement processes directly. To that end, I have decided to launch the Wyoming Integrity Political Action Committee (PAC) later this year.
This initiative aims to do more than rectify the missteps of the stablecoin project – it’s about building a foundation for ethical governance that secures Wyoming’s bright future as a leader in all emerging technologies, from quantum computing to artificial intelligence.
The Wyoming Integrity PAC is my response to these challenges. This initiative is dedicated to reforming procurement processes in Wyoming to ensure they are transparent, fair, and inclusive by funding candidates that support these goals. The PAC will focus 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 be focused 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. On a larger scale, I hope the Wyoming Integrity PAC will set an example for the Trump administration in implementing a fair and thoughtful procurement process for future federal crypto projects.
However, this initiative is about more than just technology; it’s about people. 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. We can build a state that promotes fairness, innovation, and opportunity for everyone. Let’s level the playing field, allow the best ideas to emerge, and may the best technology prevail.
