• South Dakota Governor Kristi Noem vetoed a bill that would have excluded cryptocurrencies like Bitcoin from the definition of money.
• The bill classified Central Bank Digital Currencies (CBDCs) as money instead, creating a loophole for the federal government to adopt them.
• Critics argued that the bill would only legalize CBDCs while outlawing other digital assets, prompting Gov. Noem to veto it.
South Dakota Governor Vetoes Bill Excluding Crypto From Money Definition
South Dakota governor Kristi Noem has formally rejected legislation that would have excluded bitcoin (BTC) and other cryptocurrencies from being defined as „money“ in the state. House Bill 1193, introduced by Republican Mike Stevens, was intended to amend provisions of South Dakota’s Uniform Commercial Code but instead opened the door for central bank digital currencies (CBDCs) to be adopted by the federal government.
What Was Included in HB 1193?
The 117-page bill defined money as a medium of exchange only if it is „authorized or adopted“ by a government, thereby excluding privately created digital currencies such as bitcoin (BTC). This meant that while CBDCs such as China’s Digital Yuan were classified as money, all other digital assets were not.
Criticism of HB 1193
Critics believed this bill would make it so that only governments could create „money,“ legalizing CBDCs while outlawing all other digital assets. Dennis Porter, CEO and co-founder of Satoshi Action Fund, stated there is an attempt to push this policy in 21 different states across the U.S., which could lead to a coalition of pro-CBDC states where crypto is not recognized as money.
Gov. Noem’s Veto
Explaining why she vetoed the bill, Gov. Noem said explicitly excluding crypto as money would disadvantage South Dakota residents when trading with people in other states and limit their ability to use their crypto holdings freely. She also noted that the legislation could create a loophole for the federal government to adopt central bank digital currencies and make them the only viable forms of digital currency available in America.
In conclusion, Gov. Noem’s decision to veto House Bill 1193 is widely seen as beneficial for cryptocurrency users in South Dakota and beyond who will now be able to continue using their crypto without fear of government interference or restrictions on its usage within the state boundaries