King-Hinds: Federal stablecoin regulation advancing as Tinian launches MUSD

U.S. Congresswoman Kimberlyn King-Hinds informed Tinian leaders on Tuesday that the U.S. Congress and the White House "are advancing national efforts to regulate digital assets."

In a letter to Tinian Mayor Edwin P. Aldan and the Tinian and Aguiguan Legislative Delegation chairman, Sen. Jude U. Hofschneider, she mentioned H.R. 2392 or the Stable Act, and H.R. 1582 or the Genius Act, which would establish uniform federal standards for stablecoin issuance, as well as introduce stringent requirements for reserve backing, redemption rights, capital adequacy and consumer protection.

Introduced by U.S. Congressman Bryan Steil, R-WI, on March 26, 2025, H.R. 2392 was referred to the U.S. House Committee on Financial Services and was placed on the calendar earlier this month for House action. In the U.S. Senate, S. 1582 or the Genius Act introduced by Sen. Bill Hagerty, R-TN, was approved to proceed for consideration on the Senate floor by a vote of 69-31.

Tinian Local Law 24-1, which allows online gaming on Tinian and creates a stablecoin, Marianas U.S. Dollar or MUSD, was enacted on May 19, 2025, after both houses of the CNMI Legislature overrode the governor’s veto.

Following its enactment, the Tinian Municipal Treasury officially issued and minted the first fully reserved, fiat-backed MUSD.

The island's municipal government has chosen CNMI-based Marianas Rai Corp. as the exclusive provider of software for the stablecoin.

Milestone

In her letter, King-Hinds congratulated the Tinian leaders for laying a milestone for the island and taking a pioneering step for the Commonwealth.

She said the creation of a municipally issued stablecoin “represents not only an innovative use of digital technology but also a promising opportunity to diversify local economic pathways, embrace transparent accounting technology, and position our islands at the forefront of financial innovation.”

She noted that H.R. 2392 and S. 1582 also propose limiting the issuance of payment stablecoins to chartered institutions, either federally supervised banks or state-regulated entities certified under harmonized oversight regimes. While still under consideration, these bicameral efforts by the U.S. Congress "signal the direction of federal policy and may, in time, affect public-sector initiatives like MUSD,” she said.

Given this evolving landscape, King-Hinds said it is even more important that she and the Tinian leaders remain in communication as the initiative moves forward.

"I support your efforts to adopt strong internal standards from the outset, particularly those aligned with best practices in anti-money laundering, countering the financing of terrorism and know-your-customer protocols. These measures will help ensure that MUSD develops with both integrity and resilience. Equally important is the clear communication of both progress and challenges in establishing these safeguards. Maintaining transparency with both the community and federal counterparts throughout this process will strengthen public trust and reinforce a credible path toward compliance with emerging federal oversight," King-Hinds said.

She said that Tinian's success with this venture will be seen as a reflection on the CNMI as a whole and she is optimistic about the leadership that the mayor and the delegation chairman have already shown.

For this reason, she encouraged continued dialogue about the digital economy. She said creating space for community education and engagement will help ensure that CNMI residents understand such technology, what it can do and how it fits into the future of responsible governance and economic opportunity.