Gov. Noem Veto’s Bill Banning Crypto as Money, Upholds Economic Freedom

• South Dakota Governor Kristi Noem has vetoed a bill that would have excluded cryptocurrencies from the definition of money in the state.
• The bill was intended to amend provisions of South Dakota’s Uniform Commercial Code and would have classified Central Bank Digital Currencies (CBDCs) as money instead.
• Governor Noem argued that the bill would put South Dakotans at a disadvantage when trading with people in other states and could create a loophole for the federal government to adopt CBDCs.

South Dakota Rejects Bill Excluding Cryptos from Definition of Money

Legislation Intended to Amend State’s UCC

South Dakota governor Kristi Noem has vetoed legislation that aimed to amend provisions of the state’s Uniform Commercial Code (UCC), specifically excluding digital assets such as bitcoin (BTC) from being defined as “money”. House Bill 1193, introduced by Republican Mike Stevens in the state’s House of Representatives, sought to define money as only a medium of exchange if it is “authorized or adopted” by a government. This would mean bitcoin and other privately created digital currencies are not considered money, while CBDCs such as China’s Digital Yuan are classified as such.

Governor Noem Argues Veto on Behalf of State Residents

Explaining her veto decision, Gov. Noem said that explicitly excluding crypto assets like bitcoin from the definition of money makes it difficult for South Dakotans to use their crypto holdings, putting them at a disadvantage when trading with people in other states. She also voiced concerns about how this type of language may create an opening for governments to adopt CBDCs and make them the primary forms of digital currency available.

Critics Believe Bill Poses Threat To Economic Freedom

The bill drew heavy criticism due its potential implications for economic freedom and privacy rights, with some believing it could effectively legalize CBDCs while outlawing all other forms of digital currency issued outside government control. CEO and co-founder of Satoshi Action Fund Dennis Porter suggested that similar bills were being pushed in 21 different states across America, hinting at what he called “a goal to build a bull work [sic] of pro-CBDC states”.

Conclusion: Crypto Regulation Remains Unclear In US

Gov. Noem’s veto serves as yet another reminder that cryptocurrency regulation remains unclear in many parts of America — despite growing interest in digital assets among local lawmakers and citizens alike. With various legislators pushing bills both for and against crypto adoption across multiple states, only time will tell which side will prevail in this ongoing debate over whether cryptos should be considered legal tender or not.