Governor Mark Gordon of Wyoming recently addressed the Wyoming Blockchain Symposium, announcing the imminent introduction of a state-issued dollar-pegged stablecoin in 2025.
Gordon, the Chairman of the Wyoming Stable Token Commission, has disclosed that the state is presently securing the stablecoin tokens with US Treasury bills and repurchase agreements. It will then contact exchange partners to discuss listing during the first quarter of 2025.
The conversation regarding government overreach in the form of rescues following the 2007-2008 financial crisis, which was caused by the issuance of high-risk debt instruments by institutions and mortgage-backed securities, was framed by Gordon:
“There was a time before 2008 when capitalism was really important and that meant failure could happen. Somewhere around the 2008 time frame, we made a decision that too big to fail is something that the government was going to stand behind.”
The Wyoming governor continued by elucidating that the “too big to fail” approach directly opposes the prevailing ethos in Wyoming, which regards risk as a necessary component of genuine development.
Gordon underscored the significance of a “first mover” advantage and how Wyoming’s proactive approach to digital asset regulations positions the state to capitalise on developing digital assets.
The pro-crypto governor was prompted to discuss the Federal Reserve banking system, which he described as a “drag on innovation.” He emphasised the disastrous history of the previous two central banks in the United States, established during the Madison and Jackson administrations.
Potential obstacles to a state-issued dollar stablecoin
The Stable Token Commission was established in Wyoming in July 2023, although the stablecoin initiative was initially proposed in a measure in February 2022. Upon its introduction, Governor Gordon vetoed the measure, contending that the proposal lacked sufficient information or a viable business plan to pass.
The proposal also sparked a discussion about the potential conflict between the Federal Reserve Bank and state-issued dollar tokens and central bank competition.
Brent Xu, CEO of Umee, and other industry executives have anticipated that private stablecoin issuers will encounter disagreements with the Federal Reserve.
In contrast, Wyoming Senator Chris Rothfuss contended that a state-issued, dollar-pegged token would not compete with the central bank responsible for issuing the underlying assets that the state-issued digital token would represent.
