Wyoming Committee Discusses Blockchain and AI Innovations
The Select Committee on Blockchain, Financial Technology, and Digital Innovation convened in Jackson Hole on May 14 and 15 for its inaugural interim meeting. During this session, members explored various topics including the right to repair and the role of artificial intelligence in government. Additionally, they received updates from the Wyoming Stable Token Commission. The committee is scheduled to meet again on July 10 in Casper.
Progress on the Wyoming Stable Token
Anthony Apollo, the executive director of the Wyoming Stable Token Commission, provided the committee with insights into the development of the Wyoming Stable Token, which is still on track for a July 4 launch. Apollo characterized the stable token as a “virtual currency, redeemable for $1 U.S. and held in trust by Wyoming.” He emphasized the importance of distinguishing the stable token from central bank digital currencies (CBDCs), which some officials have mistakenly labeled it as. Last year, legislation was enacted to prevent state agencies from mandating payments in CBDCs and from utilizing public funds to test them. Apollo referenced this law while defending the token, noting that despite these clarifications, misconceptions persist. He specifically mentioned comments from Rep. Tom Emmer (R-Minnesota), who has described the initiative as a CBDC. Emmer had previously expressed his strong opposition to government-issued digital currencies.
In response, Committee Cochair Sen. Chris Rothfuss (D-Laramie) advocated for proactive communication to clarify the nature of the stable token, emphasizing its backing and the distinction from CBDCs. Apollo also revealed that the commission is currently inviting public feedback on proposed procurement rules and records management until May 27 and June 30, respectively. The stable token is undergoing an “alpha phase” where test tokens, which currently lack monetary value, are being trialed across various platforms. Apollo noted that Wyoming is poised to set a precedent with the first regulatory framework for stablecoins in the country.
Committee Cochair Rep. Dainel Singh (R-Cheyenne) expressed interest in the potential for tokens to represent real-world assets. He queried Apollo about the feasibility of expanding stable tokens to encompass commodities like gold or oil. Apollo responded that trends in the industry often evolve, and he believes that real-world asset representation is the next significant development in this space.
Artificial Intelligence in Governance
The committee also dedicated time to discussions with experts in artificial intelligence, examining how various states are addressing advancements in the field. Rep. Lee Filer (R-Cheyenne) remarked on the omnipresence of AI in everyday life, noting that everyone present likely had an interaction with AI technology. He raised concerns regarding the need to protect individuals from potential misuse while avoiding over-regulation of this burgeoning industry, a sentiment echoed by Rothfuss.
Dazza Greenwood, a legal tech consultant from the Massachusetts Institute of Technology Media Lab, presented on the current landscape of AI. Following his presentation, Rothfuss raised alarm over the substantial resources consumed by generative AI, especially in combating illegal activities like phishing. He questioned whether the ongoing battle against AI-driven fraud was leading to an unsustainable cycle of technology escalation. Greenwood acknowledged this challenge but expressed confidence in the potential for developing effective countermeasures. He suggested that civilians adopt security practices similar to those employed by military personnel, including establishing a unique “safe word” to verify identities during communications.
The committee expressed interest in drafting legislation to address these emerging issues, with Filer highlighting two legislative approaches from other states: California’s Senate Bill 813, which established public-private partnerships to oversee AI developers, and Texas’s creation of an AI council.
Right-to-Repair Legislation
Another significant topic of discussion was the right-to-repair (RTR), which pertains to consumers’ ability to repair their devices without relying solely on the original manufacturers for parts and services. RTR laws can notably affect various sectors, including agriculture and consumer electronics. The committee heard from several public advocates, including Kyle Wiens, CEO of I-Fix-It, who supported RTR regulations. Lawmakers inquired whether such laws have led some manufacturers to withdraw from markets, particularly in Colorado, where RTR legislation has been enacted. Wiens refuted this claim, stating that companies continue to sell their products and often prefer to challenge the statute legally rather than exit the market.
The committee appeared unified in their intention to pursue right-to-repair legislation aimed at benefiting local farmers and ranchers. Although no specific legislation was drafted during this meeting, Singh and Rothfuss expressed their commitment to fostering regulations that support growth in sectors like AI and blockchain rather than impose restrictions.
