Power Shifts to Carson City
Many settlers were interested in independence from Utah Territory from early on, and they organized and petitioned Congress for a territorial government in 1851, 1857, and 1859, without success. They even petitioned California for annexation in 1853, again with no success.
Once the Comstock Lode was found, coupled with the federal government's need for cash, Congress finally responded by forming Nevada Territory in 1861. The mining boom brought challenge from miners who wanted recording sites closer to mining sites than Carson Valley.
As territorial governor, James Nye chose Carson City as the seat of government and further took the position of recorder away from Kinsey, granting it to Samuel D. King of Carson City. The first Nevada legislature created nine counties, including Douglas County, making Genoa its county seat.