Wyoming Governor Mark Gordon told attendees at the Wyoming Blockchain Symposium that the state plans to launch a state-issued stablecoin pegged to the US dollar by 2025, marking an interesting twist in the US debate surrounding stablecoins.

In a statement released prior to the symposium, he said, "Over the past seven years, our legislature has passed more than 40 laws to create a regulatory environment conducive to innovation around blockchain technology."

"States have a unique ability to issue stable tokens that can enhance the dollar's dominance and serve as a public good," Gordon, who also serves as the chairman of the Wyoming Stable Token Committee, said the move is part of the state's embrace of blockchain technology.

In his speech, he pointed out that the Wyoming stable token will be backed by cash, US Treasury bonds, and repurchase agreements.

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According to the Wyoming Stable Token Act, the interest income generated by the underlying securities will be used to diversify the state's revenue sources, and the capital will be allocated to Wyoming's school foundation programs.

Gordon said that once the design and support for the stablecoin are finally determined, the state will contact exchange partners for listing sometime in the first quarter of 2025.

He said the motivation for Wyoming to launch its own stablecoin began with the financial crisis of 2007-2008, which was caused by the collapse of the mortgage-backed securities market and the issuance of high-risk debt instruments by institutions.

Gordon said, "Before 2008, capitalism really mattered, which meant that failure could happen."

"At some point around 2008, we made a decision that the government would support things that were too big to fail."

He explained that this "too big to fail" approach goes directly against the spirit of many in Wyoming who believe that risk is a prerequisite for real growth.

He added that Wyoming's work in this area, and its overall work on digital assets, gives the state a "first-mover advantage" and allows the state to gain growth from digital assets.

Fixed information on Gordon's X profile says, "Adopting digital assets is essential to maintaining America's spirit of innovation."

When discussing the Federal Reserve banking system, Gordon said it is "a drag on innovation" and highlighted the failures of the first two central banks in the US established during the Madison and Jackson administrations.

The announcement sparked a debate on central bank competition and potential conflicts between state-issued dollar tokens and the Federal Reserve.

While some see the issuance of private stablecoins by states as direct competition with the Fed, Wyoming Senator Chris Rothfuss believes that state-issued dollar-pegged tokens will not compete with the central bank because the central bank is responsible for issuing the underlying assets that support the digital tokens issued by the states.

The Wyoming Blockchain Symposium also included a discussion between Senators Tim Scott (R-SC) and Cynthia Lummis (R-WY).

Scott said in the talks that if he becomes the chairman of the US Senate Banking Committee, he will propose the establishment of a subcommittee focused on the digital asset industry.

He is currently the senior Republican on the committee, which is led by Ohio Democratic Senator Sherrod Brown.

If Republicans gain majority control of the Senate, Scott could become the leader of the committee in 2025.

Scott said, "Wouldn't it be cool if we had a subcommittee in the Banking Committee focused on the industry, so we could bring more light to the conversation and hold more hearings on the industry, so we could get the job done more quickly?"

Lummis responded that the Senate Banking Committee faces "headwinds," especially from Brown and Senator Elizabeth Warren (D-MA).

She said, "They have a lot of influence over our Democratic colleagues, so we've had a tough time in the Banking Committee."

Lummis said that legislation to regulate cryptocurrencies may have to go through the Senate Agriculture Committee and acknowledged that the Senate has little time to pass meaningful legislation before the election.

She said that at this point, the best-case scenario is to pass a bill after the election, focusing on the Commodity Futures Trading Commission (CFTC) under the jurisdiction of the Agriculture Committee.

Lummis added that the legislation could be a "Christmas tree," including language regulating stablecoins, as well as Senate Majority Leader Chuck Schumer's SAFE Banking Act, which would allow cannabis businesses to enter banking.