The state of South Dakota has introduced a new bill to redefine money, particularly as it relates to cryptocurrencies.
South Dakota’s Proposed Bill Could Affect Crypto Regulation
He new bill titled An “Act to Amend the Provisions of the Uniform Commercial Code” has been introduced. It proposes that digital currencies such as bitcoin (BTC) are not considered money since they are not issued by a government.
If approved, the proposal could have significant implications for cryptocurrency regulation in the state and potentially set a precedent for other states to follow.
The proposed amendment will only recognize a medium of exchange as money if it has been “authorized or adopted” by a government. It means that cryptocurrencies would not meet the definition of money under the proposed legislation.
South Dakota’s move to redefine money with respect to digital currencies is significant, as it could have far-reaching implications for regulating cryptocurrency in the state. It remains to be seen if other states will follow South Dakota’s lead in trying to redefine the definition of money in this way.
Concerns about the impact of the proposed bill on bitcoin and CBDC
Dennis Porter, the founder of the Satoshi Fund, an organization focused on educating lawmakers and regulators about bitcoin, commented on the bill, stating that its passage could pave the way for creating a central bank digital currency (CBDC).
According to a tweet posted on March 2, Dennis Porter expressed concern about the bill, stating that the worst part is that it is being proposed in 21 states in the US. The move indicates a potential effort to establish a network of states that support CBDC while excluding digital assets like bitcoin from being classified as money.
Similarly, Andy Roth, president of the State Freedom Caucus Network, warned that the bill could set a precedent for disallowing bitcoin in transactions.
Lawmakers in the United States are grappling with how to regulate digital currencies, leading to several attempts, including the South Dakota movement, to introduce a regulatory framework.
CBDCs have been suggested to curb the influence of private digital assets, but critics argue that they are a government ploy to police citizens.
