Association calls for plain-language disclosures, redemption resilience standards, and verifiable oversight before broad distribution
FOR IMMEDIATE RELEASE
January 08, 2026
NEW YORK, JAN. 08, 2026 — The Federal Money Services Business Association (FedMSB) today announced that its President and Chair, Van Young, has sent a formal letter to Governor Mark Gordon, in his capacity as Chair of the Wyoming Stable Token Commission, outlining governance, disclosure, and operational safeguards FedMSB believes are essential before any broad distribution or large-scale market integration of Wyoming’s proposed State Stable Token (“FRNT”).
FedMSB’s letter emphasizes that a token issued under a state imprimatur carries heightened public-trust obligations and that the most acute risks in “stable” instruments often arise not from reserve narratives alone, but from redemption and operational plumbing under stress—including banking rails, compliance holds, sanctions screening, and contingency liquidity.
“When an instrument carries the State’s name, the public will reasonably infer a higher level of protection,” said Van Young, President & Chair of FedMSB. “If that perception is not matched by clear legal recourse, robust redemption mechanics, and verifiable oversight, the result can be avoidable consumer harm and reputational damage to the State itself. The solution is not less innovation—it is more precision, more transparency, and stronger stress-ready operations.”
Key Recommendations in FedMSB’s Letter
FedMSB urges the Wyoming Stable Token Commission to adopt the following as preconditions to broad distribution, major listings, or public marketing:
- Plain-English, prominent disclosures clarifying whether FRNT is backed by Wyoming’s full faith and credit, who the redemption obligor is, what holder remedies exist, and when redemption may be delayed or limited.
- A public “Redemption Playbook” detailing redemption timelines, cut-off times, failure handling, compliance/escalation procedures (including false-positive correction), and contingency rails.
- Clear legal architecture for segregation of reserves, priority of claims, treatment of operational costs, and explicit loss-absorption mechanics.
- A legally precise definition of “Licensed Service Provider (LSP)”, with a public, verifiable register of providers and supervision expectations to avoid misunderstanding about regulatory status.
- Independent assurance and high-frequency transparency, including reserve attestations with defined scope and regular publication of redemption-performance metrics and incident reporting.
Invitation to Engage
FedMSB stated it is prepared to support a structured public session and a technical working session with regulated intermediaries to vet these safeguards, and to share industry best practices on redemption resilience, MSB compliance, and operational risk management.
“Public trust is not a branding asset—it is a governance obligation,” Young added. “Wyoming can set a durable standard if it builds FRNT to withstand the predictable frictions of compliance, banking access, and market stress.”
For the full letter, please refer to:
About FedMSB
The Federal Money Services Business Association (FedMSB) is a national nonprofit trade association organized under IRC § 501(c)(6). FedMSB represents money services businesses across the United States, serving as both a standard-setter and a strategic convener for the non-bank financial services sector. Through policy engagement, standards development, industry certification, technical guidance, and educational resources, FedMSB supports regulatory modernization, technical innovation, and the integrity of next-generation “MSB 2.0” financial services. For more information, please visit www.FedMSB.org.
Contact
Ms. Jennifer Wynn
Federal Money Services Business Association
Email: Media@FedMSB.org
Phone: 212-951-1168