Tinian Stablecoin Bill Revived After Northern Mariana Senate Overrides Governor’s Veto

Northern Mariana Islands Revive Tinian Stablecoin Bill With Senate Veto Override

The Senate of the Northern Mariana Islands has voted to override Governor Arnold Palacios' veto of a proposed stablecoin bill, giving Tinian — one of the territory’s small islands — a second chance to launch a government-backed digital token.

On May 9, the Senate voted 7-1 in favor of overriding the April 11 veto, which halted legislation that would allow Tinian to issue casino licenses and authorize its treasurer to issue, manage, and redeem a digital stablecoin known as the Tinian Stable Token. The bill now heads to the 20-member House of Representatives, where it will require a two-thirds majority to become law.

If passed, Tinian could become the first U.S. public entity to issue a stablecoin, potentially beating the state of Wyoming, which also aims to release its own digital token by July.

Tinian, a remote Pacific island with just over 2,000 residents, is governed by the Municipality of Tinian and Aguiguan and is one of four local governments in the U.S. territory of the Northern Mariana Islands. The island’s economy is heavily dependent on tourism and remains sluggish following the COVID-19 downturn.

Senator Celina Babauta (right) delivers remarks at a Senate hearing alongside Senator Karl King-Nabors (middle). Source: YouTube

Despite the Senate’s approval, the bill has faced resistance. Governor Palacios cited constitutional and legal concerns in his veto letter, warning that the legislation could improperly regulate activity not clearly confined to Tinian. Democrat Senator Celina Babauta, the lone vote against the override, echoed those concerns, highlighting limited enforcement capacity and questioning the bill's reliance on gambling as an economic driver.

“I don’t believe gambling is the only thing we should turn to every time there's an investor,” Babauta said. She also warned that federal law might restrict such actions.

Still, Republican Senators Karl King-Nabors and Jude Hofschneider, both representing Tinian, have championed the legislation as a needed step toward economic innovation. King-Nabors argued the use of blockchain and stablecoins adds transparency and modern oversight to online gaming, calling it a "far more stringent and efficient" approach.

“This legislation stands at a time where we’re going through so much economic hardship,” said King-Nabors. “We’re trying to bring in revenue that doesn’t harm the land or require physical infrastructure.”

The stablecoin — named the Marianas US Dollar (MUSD) — is designed to be fully backed by U.S. dollars and Treasury bills held in reserve by the Tinian Municipal Treasury. Built on the eCash blockchain (a fork of Bitcoin Cash ABC), MUSD is being developed in partnership with local tech firm Marianas Rai Corporation, based in Saipan.

Vin Armani, co-founder and tech chief of Marianas Rai, said in April that the firm was in active talks with potential partners and ready to launch if given the green light.

If passed, the bill would not only mark a landmark move for a U.S. territory but also place Tinian at the center of stablecoin innovation — just as Congress in Washington struggles to pass nationwide legislation. The GENIUS Act and the STABLE Act, both designed to regulate stablecoins, have stalled in the House and Senate after Democrats pulled support due to former President Donald Trump’s ties to crypto ventures.

The outcome of the House vote in the Northern Mariana Islands could soon determine whether MUSD becomes the first government-issued stablecoin in U.S. jurisdiction.