• South Dakota Governor Kristi Noem has vetoed a bill that would have excluded cryptocurrencies from the definition of money in the state.
• The legislation, known as House Bill 1193, sought to amend the provisions of South Dakota’s Uniform Commercial Code by excluding digital assets from being defined as “money”.
• Critics believed this bill would make it so that only governments could create „money,“ therefore legalizing CBDCs while outlawing all other digital currencies.
South Dakota Governor Vetoes Crypto Exclusion Bill
South Dakota governor Kristi Noem has formally rejected legislation that would have excluded bitcoin (BTC) and other cryptocurrencies from the definition of money. The bill, known as House Bill 1193, was intended to amend provisions of South Dakota’s Uniform Commercial Code to exclude digital assets from being defined as “money” in the state.
Reason for Veto
Explaining why she vetoed the bill, gov. Noem said that explicitly excluding crypto as money would make it difficult for South Dakota residents to use their crypto holdings and put them at a disadvantage when trading with people in other states. Gov. Noem also stated that the definition of money in HB 1193 could create a loophole for the federal government to adopt central bank digital currencies (CBDCs) and make them the only viable forms of digital money.
Proposed Definition
The 117-page bill proposed by Republican Mike Stevens defines money as a possible medium of exchange only if it is „authorized or adopted“ by a government. This means bitcoin (BTC) and other privately created digital currencies are not classified as money, but government-controlled CBDCs such as China’s Digital Yuan are considered legal tender under this definition.
Criticism
Critics believed this bill would make it so that only governments could create „money,“ therefore legalizing CBDCs while outlawing all other digital assets according to Dennis Porter, CEO and co-founder of Satoshi Action Fund. He also insinuated HB 1193 was part of a wider plan to assemble a coalition of pro-CBDC states that exclude digital assets like bitcoin from the definition of money.
Conclusion
Gov Noem’s veto has prevented this proposal from becoming law in South Dakota, protecting citizens‘ right to use their crypto holdings without fear of discrimination or exclusion by their state government
