SUPERIOR Court Judge Kenneth L. Govendo on June 17 issued an order granting the parties’ request to vacate the preliminary injunction hearing originally scheduled for June 30 and has rescheduled Attorney General Edward E. Manibusan’s lawsuit challenging the Tinian stablecoin law to July 21 at 1:30 p.m.
The parties in the lawsuit asked the Superior Court to move the hearing dates, as they are actively trying to settle the case.
According to the stipulation filed by the parties, “The reason for this stipulation is that the parties are in active negotiations to reach an agreement that would moot the motion.”
Manibusan is seeking a court injunction to stop the enforcement of Tinian Local Law 24-03 and has asked the Superior Court to declare the law unconstitutional.
Gov. Arnold I. Palacios disapproved the measure based on the AG’s legal opinion, but both houses of the Legislature overrode his veto.
The law authorizes internet gambling on Tinian and the issuance of a digital currency known as the “Tinian Stable Token,” later rebranded as the “Marianas U.S. Dollar.”
The AG has named the Tinian Casino Gaming Control Commission, Tinian Municipal Treasurer Maria Barbara Borja, and Marianas Rai Corporation as defendants. Marianas Rai was selected by Tinian as the exclusive provider of software and services for the issuance and redemption of the Marianas U.S. Dollar.
The AG argues that the local Tinian law exceeds the legislative authority of the Tinian and Aguiguan Legislative Delegation by regulating activities beyond the geographical scope of the Second Senatorial District.
He said the measure “lacks robust enforcement measures to prevent or thwart illegal gaming activities in order to attain the vibrant and profitable Tinian casino industry the bill envisions, as articulated in its findings and purpose.”
Moreover, it “does not contain any provision providing for fines, license revocations, or other legal sanctions specific to internet gaming that can strengthen enforcement of this especially volatile and vulnerable activity, which, by its fluid nature, makes it harder for the government to track and regulate,” Manibusan said.
The proponents of the measure said they have addressed the concerns raised against it.
