Global: Wyoming Stablecoin Set for Potential Q1 2025 Launch, Says Governor Mark Gordon

Wyoming Governor Mark Gordon recently announced that the state is preparing to launch a dollar-pegged stablecoin by the first quarter of 2025. Speaking at the Wyoming Blockchain Symposium, Gordon outlined how the state is leveraging blockchain technology to drive innovation and discussed the potential role of stablecoins in extending the lifespan of the U.S. dollar by increasing demand for the underlying fiat currency.

As the Chairman of the Wyoming Stable Token Commission, Gordon revealed that the state is currently working on securing the stablecoin’s backing through U.S. Treasury bills and repurchase agreements. Once this framework is established, Wyoming plans to collaborate with exchange partners to list the stablecoin, with a target launch date in early 2025.

The Context of Financial System Instability

Governor Gordon’s remarks also touched on broader financial issues, particularly government intervention in the economy. He criticized the “too big to fail” approach that became prevalent following the 2007-2008 financial crisis, which was triggered by the collapse of mortgage-backed securities and the issuance of high-risk debt instruments by financial institutions.

“There was a time before 2008 when capitalism was really important, and that meant failure could happen. But around 2008, we decided that ‘too big to fail’ was something the government would stand behind,” Gordon stated.

He emphasized that Wyoming’s ethos is rooted in accepting risk as a necessary component of genuine growth, contrasting this with federal policies that he views as stifling innovation. Gordon underscored the importance of Wyoming’s proactive approach to digital asset regulations, positioning the state as a leader in the emerging digital economy.

Challenges and Considerations for a State-Issued Stablecoin

Wyoming’s journey toward launching a state-issued stablecoin began with the establishment of the Wyoming Stable Token Commission in July 2023. However, the concept was initially proposed in a February 2022 bill, which Governor Gordon vetoed at the time, citing insufficient information and the lack of a robust business plan.

The proposal has sparked debate over potential conflicts between state-issued digital currencies and the Federal Reserve. Some industry experts, like Brent Xu, CEO of Umee, have warned of potential clashes between private stablecoin issuers and the Federal Reserve. However, Wyoming Senator Chris Rothfuss has argued that a state-issued, dollar-pegged stablecoin would not compete with the central bank. Instead, it would complement the Federal Reserve, as the underlying assets backing the state-issued digital token would still be issued by the federal government.

As Wyoming moves forward with its stablecoin initiative, the state’s efforts could serve as a model for how local governments might engage with blockchain technology and digital currencies, balancing innovation with regulatory compliance.