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 excluded cryptocurrencies but classified CBDCs as money
The legislation, known as House Bill 1193it was intended to amend provisions of the South Dakota Uniform Commercial Code to preclude digital assets from being defined as “money” in the state.
Explaining why he vetoed the bill, Gov. no em saying that explicitly excluding cryptocurrencies as money would make it more difficult for South Dakotans to use their cryptocurrencies and put them at a disadvantage when trading with people in other states.
Governor 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.
Republican Mike Stevens introduced the 117-page bill in the state House of Representatives, which passed it earlier this month. It defines money as a possible medium of exchange only if it is “licensed or adopted” by a government.
The wording of the bill means that bitcoin (BTC) and other privately created digital currencies are not money, but government-controlled CBDCs such as the Chinese digital Yuan are.
Bill drew strong criticism
Critics believed that the bill would make it so only governments could create “money”, thus legalizing CBDCs and banning all other digital assets.
According to Dennis Porter, CEO and co-founder of the Satoshi Action Fund, the same bill is being pushed in 21 different states across the US. He hinted that HB 1193 was part of a larger plan to assemble a coalition of pro-states. CBDCs that exclude digital assets like bitcoin from the definition of money.
Andy Roth, president of the State Freedom Caucus Network, shared similar sentiments. He affirmed that if the government Had Noem passed the bill, it would have paved the way for government-controlled CBDCs while banning decentralized digital currencies like bitcoin as a form of payment.
Other critics of the bill included Club for Growth’s David McIntosh, who wrote a letter to the Noem government urging it to veto HB 1193.
In his letter, McIntosh described the bill as an attack on individual liberty and national security. He also claimed that it would stifle free markets and hinder innovation in the US.