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5/18/2025—In a landmark move aimed at revitalizing the Commonwealth’s fragile economy, the House of Representatives voted last May 15 to override Gov. Arnold I. Palacios’ veto of Senate Local Bill 24-01, making the CNMI—specifically the island of Tinian—the first U.S. jurisdiction to adopt a government-backed cryptocurrency for internet gaming.
The bill establishes a framework for the issuance and use of the “Tinian Stable Token,” a stablecoin backed 1:1 by U.S. dollars and government bonds, and used for regulated internet gaming transactions. The move has attracted global attention from the financial technology sector, with the CNMI now poised to set a precedent for digital innovation in the U.S. territories.
“The world is watching and the actions you take in the next few minutes, on the matter of this override, will have an impact on the economic prosperity, or lack thereof, for generations of citizens of the CNMI. You have a chance to attract billions of dollars of investment and tax revenue from the fastest growing segment of the financial technology industry,” said Vin Armani, chief technology officer of Marianas Rai Corp. and a vocal advocate of the measure, in passionate remarks before lawmakers.
Armani said the introduction of the Tinian Stable Token could unlock the door for international investors and blockchain companies to establish a presence in the CNMI, bringing tax revenues, job opportunities, and infrastructure development without depending on tourism or environmentally disruptive construction.
Sen. Jude U. Hofschneider, who co-sponsored the bill, emphasized the need for diversification in the wake of repeated economic shocks from tourism decline and federal program wind-downs.
He thanked the House for passing the override of Palacios’ veto in a social media message to Marianas Press.
“We believe that this initiative can help not only Tinian but the entire CNMI in our efforts to economic recovery. We often hear statements being made about diversifying our economy. This exercise is a great indication of what that means. Now the work continues and we are excited of this opportunity.”
He assured lawmakers that regulations and enforcement mechanisms already exist through the Tinian Casino Gaming Control Commission, which would oversee licensing and compliance.
Palacios initially vetoed the measure, citing concerns raised by the Office of the Attorney General about oversight, financial transparency, and constitutional authority. The AG questioned whether such a currency framework could bypass federal and local financial regulations or create liabilities for the CNMI government.
But lawmakers in both the Senate and House rejected the veto, arguing that the bill only enables a legal framework and does not appropriate any government funds or authorize uncontrolled crypto trading. Tinian’s local leaders said the system will be tightly regulated, with every token transaction recorded on a tamper-proof blockchain for public auditing.
Rep. Patrick San Nicolas said a vote to override Palacios’ veto on SLB 24-01 is a vote for the future of not only Tinian but also of the entire CNMI.
“Overriding this Senate local bill is a forward-looking measure that gives our island and our Commonwealth the legal infrastructure to enter a global digital economy through standalone internet gaming licenses and the creation of the Tinian Stablecoin. This is not a rushed thing into unregulated digital wireless. This is a bill about transparency. This is a bill about accountability and modern financial infrastructure. It is about building an economy within the Commonwealth.”
He added that the bill couldn’t come at a better time when the islands’ only industry is falling by the wayside.
“It is about number of flights landing into the Commonwealth or the rise and fall of tourists coming in. It is about taking control of our economic future in a way that is legal, auditable, competitive, and [with]international standards.”
Floor leader Rep. Marissa Flores, who voted no to the override, asked her colleagues for patience and not rush into passing an override without carefully thinking of its ramifications.
“By taking the time to think carefully, to act thoughtfully, and to persevere patiently, we can make decisions that not only serve our immediate political needs, but also pave the way for the long-term security, prosperity, and the well-being of our Marianas. Let us strive to be lawmakers who are remembered not for the speed of our actions, but for the wisdom, foresight, and enduring impact of our policies.”
She then posed this challenge to San Nicolas, “I pressure and I challenge my colleague from Tinian should this body decide in favor of this override, sir, I plead with you that the lines of communications open, remain open, and that any dialogue on [Business Gross Revenue] that comes to Tinian, that there is a consequence for a failure to do so, and that anybody that challenges a system that is made for to prohibit illicit activity and any other activity that comes with this [internet]-gaming that they be prosecuted.”
Rep. Blas Jonathan Attao said Tinian should also be given a chance to again chart its own future much like it did when it approved casino gaming in 1999 that resulted in the building of the Tinian Dynasty Hotel & Casino.
“It's just unfortunate that when it comes to something that's vetoed for local level legislation, that both the House and the Senate have to act on it. And it puts, at least in the House side, it puts the members from the first and second senatorial district in a disadvantage because there's only one member. And that one member has to work 10 times harder than the members on the side who ask for an override because now you have to satisfy 19, 18 at the very least... Let them try it. It's allowed there. I believe Rota's referendum allows the same thing, and if Rota decides to do it, let them do it.”
While he voted yes for the override, Rep. Vincent S. Aldan reminded everyone of the failed Tinian Dynasty and Imperial Pacific International (CNMI) casino ventures.
“I'm asking you, please do not forget of all the things that's happened before when it comes to casino. We have the dynasty that fell apart, and we're still suffering, you know, Tinian is suffering, you know, and we still, and we have IPI... I really do hope and I really do pray and wish that this thing works out. (Because if it does, if we've learned anything in the past, is that corruption, under the table dealings, you know, favoritism, all of these things doesn't work out. You know, everything has pros and cons,” said Aldan, a former IPI employee.
Senate Local Bill 24-01, Draft 1 essentially authorizes internet gaming using a regulated platform and creates the “Tinian Stable Token” or MUSD, backed by the U.S. dollar and managed by the CNMI treasury on a secure blockchain. It also enables casinos to accept and process stablecoin payments for digital gaming and mandates full transparency and recordkeeping of all gaming transactions.
With this framework, Tinian could become a global destination for blockchain-based gaming, a burgeoning sector worth billions of dollars annually.
Proponents say the stablecoin bill allows Tinian—and the CNMI as a whole—to chart its own economic course without waiting for federal handouts or external investments.
The decision, they said, marks a historic first—a U.S. territory establishing its own digital currency system for regulated economic use. As developers and investors prepare to engage with the new system, eyes around the world—especially from the crypto and gaming sectors—are firmly fixed on the CNMI.
“It's not only second senatorial district—first, second, and third. The whole Commonwealth. It's not just one senatorial district. Thank you, Mr. Speaker. I'm done,” said Nicolas shortly after the members voted 14-2 to override Palacios’ veto.
Senate last May 9 votied 7-1 in a two-thirds majority to override Palacios’ veto, which then needed a two-thirds majority in the House to pass.
Alongside the override of SLB 24-01, the House passed several other key measures during the May 15 session they are the following:
House Bill 24-1 (HS1): Amends sexual offenses laws, strengthening prosecution of crimes such as unlawful exploitation and child abuse.
House Bill 24-15 (HD1): Establishes a labor management relations act, expanding worker representation in the public sector.
House Bill 24-14: Creates the Office of Financial Integrity and Compliance, or OFIC, to improve government financial reporting and accountability.
Senate Joint Resolution 24-01 (HD1): Supports the Commonwealth Ports Authority’s request for exemption from U.S.-China air travel restrictions to bring back direct flights from China.
Story by Mark Rabago
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