The United States’ national debt surpassed the unconscionable amount of $36 trillion in November. December’s Treasury report estimated $1.22 trillion in interest payments for the fiscal year, a dire number that exceeds the combined national defense and education budgets.

This development is beyond unsettling and underscores the urgency of staunching the hemorrhage. Many are beginning to realize that stablecoins may serve as one of the few solutions to a predictable debt crisis. That solution is exactly what the state of Wyoming has been probing for years.

Wyoming stands on the vanguard of forward-thinking legislation around cryptocurrencies, blockchain and digital assets. Since 2016, our Legislature has passed over 40 laws designed to create a regulatory environment conducive to innovation around this emerging technology.

One such initiative is the Wyoming Stable Token. With the passage of the Wyoming Stable Token Act, the Wyoming Legislature affirmed its desire for the state to launch the first fully-reserved, fiat-backed stable token issued by a public entity in the United States.

Like incumbent stablecoin offerings, the anticipated “WYST” token will be released on public blockchains and can be used to settle dollar-denominated transactions anywhere on earth, in seconds, with minimal fees, and mitigating counterparty risk.

The Wyoming token will be backed by cash and short-duration U.S. Treasury securities and repurchase agreements held in reserve. Interest income generated on the underlying securities will help diversify the state’s revenue streams.

Since capital will be distributed quarterly to the state’s school foundation program, we view the project as a public good.

This opportunity extends beyond our state borders. The rise of dollar-backed stablecoins offers a unique opportunity to address the broader economic challenges facing our nation. Stablecoins, when properly regulated and integrated into the global financial system, can provide a consistent and reliable source of demand for U.S. Treasuries. Where better to do that than in the USA?

Ominously, China, the second largest holder of U.S. debt, has continued its steady sell-off — over $265 billion since January 2022. In contrast, dollar-backed stablecoins now rank as a top-20 holder of U.S. debt in aggregate. Stablecoins are a clear mitigant of the risks associated with foreign ownership of our national debt and can ensure continued confidence in the dollar.

The strategic importance of a dollar-backed stablecoin becomes even more apparent in the context of wider geopolitical shifts. The potential inclusion of Saudi Arabia in the BRICS+ coalition and their nonrenewal of the petrodollar agreement signal a realignment in global financial dynamics.

The BRICS+ nations, with stated plans for their own digital currency, could pose a direct challenge to the dollar’s supremacy. By embracing stablecoins, the U.S. can counter this threat and reinforce the dollar’s position as the world’s primary reserve currency.

America’s stodgy, byzantine regulatory apparatus has slowed a responsible adoption of these proven, blockchain-native instruments and has effectively hamstrung their domestic development with a lack of clear and cohesive regulation in the United States.

Neither the “Clarity for Payment Stablecoins Act” introduced by Rep. Patrick McHenry, R-N.C., nor the bipartisan “Lummis-Gillibrand Payment Stablecoin Act,” have received a floor vote.

Compare this inaction to the forward momentum of the European Union, the Monetary Authority of Singapore and Japan’s Financial Services Agency. Each has enacted stablecoin legislation. You can see why the U.S. risks surrendering innovation.

By focusing so heavily on centralized regulation, America has crippled the innovation that has been the hallmark of her success. Witness an ongoing effort to debank companies working with digital assets, and pressure applied to novel fintech companies.

I was encouraged to hear President Trump acknowledge this concern on the campaign trail. He clearly emphasized the need for a legislative framework that can support stablecoins, while discouraging any notion of a central bank digital currency. CBDCs, unlike stablecoins, are controlled by the federal government, raising concerns about their backing, privacy and financial freedom.

Gov. Mark Gordon was elected chief executive of the state of Wyoming on Nov. 6, 2018. Through his robust public and private sector experiences, Gordon is uniquely qualified for his hands-on role as chair of the Wyoming Stable Token Commission.

The commission endeavors to launch the first fiat-backed, fully-reserved stable token issued by a public entity. Gordon has signed over 30 pieces of legislation focused on the treatment and utilization of cryptocurrency, blockchain, and digital assets in Wyoming.

Prior to his election as governor, Gordon served the people of Wyoming as state treasurer (2012-2019), ranking in the top 100 “Most Significant and Impactful Public Investor Executives” (The Sovereign Wealth Fund Institute). Under his guidance as treasurer, Wyoming’s sovereign funds earned a No. 1 ranking for the United States and No. 3 in the world for transparency (Peterson Institute). Gordon served as a Class B director at the Federal Reserve Bank of Kansas City.

Rancher, mountaineer, and entrepreneur, he has experience in natural resource management, building businesses and raising a family. He believes that measured decentralization of the domestic financial system is needed to fortify dollar hegemony and keep economic innovation in the United States.