Charles Hoskinson, founder of Cardano and a prominent Wyoming ranch owner, is furious. The state’s process for selecting vendors for its stable token project has left him, and his blockchain platform, Cardano, on the sidelines.
He’s calling foul play, pointing fingers at a lack of transparency, and labeling the decision to exclude Cardano as both arbitrary and unfair.
The Wyoming Stable Token Commission announced a list of pre-qualified vendors for the project, including Solana, Avalanche, Sui, Stellar, and Ethereum. Ethereum’s listing even included additional notes, highlighting its layer-2 networks like Polygon, Arbitrum, Base, and Optimism.
The rest? No details, no explanations, just names on a list. Missing from the group was Cardano, despite its deep ties to the state and a heavy local presence. Charles is not happy, and he’s making sure everyone knows it.
Charles feels blindsided
Charles says the announcement hit like a punch out of nowhere. “The largest Wyoming-based blockchain company in the world, with hundreds of employees here, can’t even bid on this,” he vented. “Instead, companies from California, New York, and even Singapore, with no connection to Wyoming, are taking part.”
The process was, according to Charles, a blatant disregard for fairness. The commission never made its criteria public, leaving thousands of blockchain companies, including Cardano, in the dark.
Wyoming’s stable token project, designed to create a cryptocurrency pegged to the U.S. dollar, is now moving forward without input from its biggest local player.
Charles emphasized how this lack of transparency prevented Cardano from even attempting to meet the commission’s qualifications. No public criteria meant no opportunity to create a prototype or prove capabilities. “We had no chance,” he said.
The Commission’s picks
The Wyoming Stable Token Commission, led by Executive Director Anthony Apollo, defended its selection of vendors. According to Apollo, the list reflects platforms deemed “in-scope” for the initial rollout of the state’s stable token. But Charles isn’t buying it.
He accused Apollo, a former employee of Consensus (the team behind Ethereum), of bias. Charles alleged that Apollo wanted the stable token to be built on Ethereum from the beginning.
“He came into meetings saying Ethereum should be the first choice,” Charles claimed, adding that he pushed back on this idea immediately.
The announcement’s focus on Ethereum and its layer-2 networks didn’t sit well with Charles. He argued that Wyoming’s legislative framework was built to treat all blockchain platforms equally, not favor one over another.
“Wyoming passed 31 cryptocurrency laws to create a level playing field,” Charles said. “This decision undermines everything those laws stand for.”
A closed-door process
Transparency—or the lack of it—is at the heart of Charles’s complaints. He said the commission initially promised an open and inclusive process, but things quickly went dark. Meetings became private.
Subcommittees stopped sharing information. What started as a collaborative effort morphed into a closed-door operation where decisions were made without public input.
“There was no opportunity for public comment or appeals,” Charles said. “After picking their shortlist, they excluded Cardano based on so-called capabilities we supposedly lack—capabilities we were never told we needed.”
The final criteria, according to Charles, were created behind closed doors and never disclosed. This secrecy, he argued, not only hurt Cardano but also undermined the credibility of Wyoming’s blockchain-friendly reputation.
State Senator weighs in
State Senator Chris Rothfuss, one of the architects of Wyoming’s digital asset laws, sees things differently. Rothfuss defended the selection process, calling it fair and guided by experts.
He said the criteria were designed to ensure compliance with regulatory requirements, including the ability to “freeze and seize” assets. This feature, often demanded by regulators like the SEC, aims to prevent illicit activities like money laundering.
Rothfuss acknowledged that Cardano does not currently have this capability but suggested that the situation is fluid. He pointed to Cardano’s layer-2 network, Midnight, which is still in development. Rothfuss said Midnight could eventually meet the criteria and join the list of pre-qualified vendors.
“This process is dynamic,” Rothfuss said. “Pre-qualified blockchains will evolve as their capabilities evolve.” Rothfuss also invited the Cardano community to provide feedback and correct any errors in the commission’s evaluation.
“Wyoming remains committed to a technology-neutral approach,” he said.
The dollar offer
Charles’s frustration is compounded by the fact that he had championed Wyoming’s stable token from the start. When the project was first unveiled 18 months ago, he offered to build it for just $1. “It wasn’t about money,” he said. “I just wanted it done right.”
Over the past year and a half, Charles attended numerous meetings and reviewed hundreds of documents related to the stable token. But as time went on, he said, the process became increasingly secretive. What began as an open call for proposals turned into a behind-the-scenes selection process.
“They promised an open RFP process,” Charles said. “Instead, they arbitrarily picked winners and losers with no oversight.”
He also criticized the exclusion of Bitcoin from the vendor list. “Bitcoin is larger than all other cryptocurrencies combined,” he said. He pointed out that prominent figures like Senator Cynthia Lummis have been vocal supporters of Bitcoin, making its absence puzzling.
The decision to sideline Bitcoin, Cardano, and thousands of other blockchains has left Charles scratching his head. “It’s extraordinary to me,” he said.
“I believe in Wyoming,” Charles added. “I live here, I work here, and I’m committed to this state. But this process has to change.”
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