(Office of Senator Celina Roberto Babauta)–Senator Celina R. Babauta (D) has stated she fully supports the Attorney General’s Office’s petition asking the CNMI Superior Court to strike down Tinian Local Law 21-09 on constitutional grounds.
Senator Babauta was the sole senate member to vote against overriding Governor Arnold Palacios’ veto of the bill in the Senate Session held on May 9, 2025, on Tinian.
The law initially branded the “Tinian Stable Coin,” was later renamed by the Tinian and Aguiguan Leadership to the “Marianas United States Dollar” (MUSD) — a rebranding Senator Babauta views as deeply problematic. The MUSD was intended to be backed by cash and U.S. Treasury securities and is part of an initiative to boost Tinian’s economic development through digital innovation. “However, even well-intentioned legislation must adhere to constitutional boundaries and not infringe upon federal powers,” said Babauta.
“By calling it the ‘Marianas US Dollar,’ the Tinian leadership effectively attempted to issue a new regional currency, this raises significant legal and constitutional concerns, as the authority to create and regulate currency lies well beyond the scope of any local government,” said Senator Babauta. “This is a dangerous precedent that undermines federal authority and misrepresents the scope of municipal power.”
“This legislation is not a municipal issue confined to Tinian alone. When online gambling enables access from Saipan, Rota, and beyond, it becomes a Commonwealth-wide and potentially interstate matter under federal jurisdiction,” said Babauta.
“The question must then be asked, how can the Tinian leadership and the legislative members who supported the veto override claim this is a purely municipal matter when the law clearly allows residents from Saipan and Rota to participate in online gambling activities regulated by Tinian?”
“I commend the Attorney General for taking legal action to challenge the law’s validity in court and to uphold our Constitution,” Senator Babauta said. “This legislation reaches far beyond Tinian’s local Treasury’s jurisdiction. It enables online gambling activities that residents from Saipan, Rota, and beyond can access — making it clearly not a municipal matter.” She reaffirmed her commitment to responsible legislation that supports economic development without violating constitutional boundaries.
