ATTORNEY General Edward Manibusan has asked the Superior Court to declare Tinian Local Law 24-03 unconstitutional.
The law created a Tinian stablecoin and allows internet gambling on the island.
In his official capacity, Manibusan also sought injunctive relief to prevent the law from being enforced.
The Office of the Attorney General, through Chief Solicitor J. Robert Glass Jr., filed the complaint on May 30.
It named as defendants the Tinian Casino Gaming Control Commission, Maria Barbara Borja, in her official capacity as Tinian municipal treasurer, and Marianas Rai Corporation.
Citing the AG’s legal opinion, Gov. Arnold I. Palacios disapproved Senate Local Bill 24-1, but both houses of the Legislature overrode his veto, and the measure became Tinian Local Law 24-03.
Tinian Mayor Edwin P. Aldan then announced that the Tinian Municipal Treasury had officially issued and minted the Marianas U.S. Dollar or MUSD, marking “a historic milestone for U.S. states, territories, and commonwealths, and a pivotal moment in the evolution of money.”
According to the mayor’s office, MUSD is exclusively issued as a Simple Ledger Protocol token on the eCash (XEC) network, the most widely adopted Bitcoin token standard. Tinian has chosen CNMI-based Marianas Rai Corp. as the exclusive provider of software and services for the issuance and redemption of MUSD, including the growth of related technology and the business development ecosystem, the mayor’s office stated.
The law authorized internet gambling on Tinian and the issuance of a digital currency known as the “Tinian Stable Token,” which was later rebranded as “Marianas USD.”
According to the AG’s complaint, the law exceeds the legislative authority of the Tinian and Aguiguan Legislative Delegation by regulating activities beyond the geographical scope of the Second Senatorial District.
The lawsuit also stated that the name change from Tinian Stable to Marianas USD shows that the local law has governing issues beyond the Second Senatorial District by labeling the coin as representative of the entire Marianas.
The lawsuit noted the potential harm to the legal integrity of Commonwealth-wide legislative authority and the economic impact of internet gaming and digital currency transactions extending beyond the Second Senatorial District.
According to the AG, the law “allows the purchase of coins from anywhere in the world, thus reaching beyond the boundaries of the Second Senatorial District.”
Furthermore, the AG stated, the Tinian Stable Token, “Marianas USD,” is created by Marianas Rai Corp. but is held by the Tinian Treasurer in the “Tinian Stable Token Reserve Account (TSTRA).” As the two entities must work closely and are intertwined, the actions of Marianas Rai Corp. in executing the law by the creation of the Marianas USD/Tinian Stable Token exceed the bounds of the Second Senatorial District, the AG added.
The AG wants the court to declare that the law violates both the CNMI and United States Constitutions by creating currency and involving the municipality in the issuance of virtual currency.
On Monday, June 2, the Superior Court clerk issued summons to the Tinian Casino Gaming Control Commission; Maria Barbara Borja, in her official capacity as Tinian municipal treasurer; and Marianas Rai Corporation. The defendants are required to file an answer to the lawsuit within 20 days of being served.
