Wyoming Drops Its Own Dollar-Backed Coin—Rebel Finance or Trouble Ahead?

They love waking up to the scent of digital disruption in the air. Across the US, states are leaning hard into crypto—but while Washington gears up for more regulation and oversight, Wyoming is swerving in the opposite direction.

The Cowboy State just fired off a major shot in the digital currency wars: meet WYST, its very own dollar-backed stablecoin. It’s not just a fintech experiment—it’s a challenge to the federal order.

WYST, short for “Wyoming Stable Token,” is meant to shake up how public money flows. Faster payments, lower costs, and even some funding for local schools? Sounds nice on paper. The coin is being tested on Avalanche through a local startup called Hashfire. First mission: pay state contractors instantly. Right now, those payments can take more than 45 days. Wyoming wants it done in seconds.

This is more than a tech upgrade. It’s a political statement.

Senator Chris Rothfuss, who’s backing the project, made Wyoming’s stance crystal clear:

“We have sovereignty. The federal government can’t just send us a cease and desist and start arresting people.”

Translation: Wyoming isn’t playing by DC’s rules—and they’re proud of it.

But not everyone’s clapping. Congressman Tom Emmer, a fellow Republican, calls WYST a “disguised CBDC,” warning it could become a surveillance tool like the central bank digital currencies he’s staunchly against. For him, this is a slippery slope straight to government overreach.

So where does WYST really land? Somewhere in the blurry zone between innovation and intrusion.

Anthony Apollo, who heads Wyoming’s token commission, insists WYST isn’t a federal operation. It’s backed by US Treasury bonds, not printed out of thin air. No inflation risks, no funny business. Still, big questions remain: Will transactions be tracked? Can the state freeze funds? What happens when administrations change?

Wyoming promises they won’t block transactions without a court order. But promises only go so far in the rapidly shifting world of politics and tech.

WYST isn’t just some shiny crypto gadget. It’s a real test case for public-sector finance. And if it works, it could trigger a wave of copycat coins across other states. But the path ahead isn’t clear—federal law around this kind of project is fuzzy at best. If too many states start launching their own “public crypto,” a legal showdown with Washington seems almost inevitable.

And some aren’t waiting to throw punches. Senator Elizabeth Warren has already slammed efforts like this as “a license to speculate.” She argues that instead of protecting people, stablecoins create the illusion of safety—masking a deeper fragility in the financial system.

Here’s the quick take on WYST:

• It’s Wyoming’s state-backed stablecoin, pegged to the US dollar;
• Runs on Avalanche via AvaCloud;
• Aims to launch officially in August after a pilot for paying public contractors;
• Could offer future rewards or token-based payments;
• Any profits? Straight into Wyoming’s education budget;
• Other states are watching closely, but wary of poking the federal bear.

The original story by Mikaia Andriamahazoarimanana for Cointribune.