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Senate panel advances FAST Act to let state use stable tokens as optional vendor payment
Summary
The Senate Finance Committee reported a committee substitute for Senate Bill 560 (the FAST Act), which would let the state use an optional 'stable token' payment method for contracts if vendors accept it; the State Treasurer testified the administration can implement the program and proponents expect lower transaction fees and reduced fraud.
The West Virginia Senate Finance Committee on the motion of the vice chairman voted to report the committee substitute for Senate Bill 560, the proposed FAST Act, which would create a statutory framework for the state to optionally pay vendors using an authorized "stable token."
Counsel told the committee the bill defines a stable token as a digital asset issued by a U.S.-incorporated company with U.S. founders and controlling shareholders, fully backed on a 1:1 basis by U.S. dollars or short-term U.S. Treasury obligations, with reserves held at U.S. chartered banks or federally regulated custodians, redeemable at par on demand, subject to quarterly independent attestations, and accompanied by monthly public reserve reports. The bill would establish a new article giving the State Treasurer responsibility to publish a list of authorized stable tokens, charge fees to recover expenses, promulgate rules with specified elements, and deliver an annual report to the Joint Committee on Government and Finance.
The Chair recognized Treasurer Pack for questions. Treasurer Pack said the administration can implement the program within current resources and described the proposal as part of modernizing the state's payment system. "We can handle the funds that are required," he said. On potential savings, he said advocates "believe it's going to be a cheaper transaction" and that the technology proponents expect "cheaper transaction fees" and "less fraud." He also told senators the state would proceed carefully and return to the Legislature as implementation steps proceed.
Senators asked whether vendors currently accept stable tokens and whether other token-based payment systems are anticipated; counsel and the Treasurer said none are required by the bill and that the statute is intended to prepare the state for future developments while leaving acceptance voluntary.
Vice Chairman moved that the committee substitute be reported to the full Senate with a recommendation that it pass; the motion carried by voice vote.
The committee's action sends the substitute to the full Senate for further consideration; the bill, if enacted, would create administrative responsibilities for the Treasurer and require ongoing reports to the Joint Committee on Government and Finance.
