South Dakota Gov Veto’s Bill Excluding Crypto from Definition of Money

• South Dakota Governor Kristi Noem has vetoed a bill that would have excluded cryptocurrencies from the definition of “money” in the state’s Uniform Commercial Code.
• The bill was criticized by conservatives, who were concerned that it could lead to a federal government-issued digital dollar.
• Noem’s veto was applauded by groups such as the Club for Growth and the South Dakota Freedom Caucus, who praised her for upholding financial freedom.

South Dakota Governor Vetoes Bill Excluding Crypto from Definition of Money

South Dakota Governor Kristi Noem has used her authority to veto legislation aimed at changing the definition of money to exclude cryptocurrencies. In a March 9 notice to South Dakota House Speaker Hugh Bartels, Noem said she had vetoed House Bill 1193, which proposed amending the state’s Uniform Commercial Code (UCC) to specifically exclude cryptocurrencies and other digital assets — with the possible exception of central bank digital currencies, or CBDCs.

Criticism From Conservatives

The bill was criticized by many conservatives, who argued that its passage could potentially allow for „future overreach“ from the federal government in issuing a digital dollar. Organizations such as Club for Growth wrote letters to Noem urging her to oppose the bill and making comparisons between a U.S.-issued CBDC and China’s digital yuan.

Noem’s Veto Praised By Supporters

Noem’s decision to veto HB 1193 was praised by groups such as the South Dakota Freedom Caucus — a group of Republican state lawmakers — who lauded her actions on Twitter: „Thank you @govkristinoem for your veto and for listening to the people of South Dakota.“

Proposed Amendment To UCC

Under the proposed UCC amendment, money would be defined as „a medium of exchange accepted by sellers generally in lieu of legal tender,“ excluding „cryptocurrencies or other digital assets.“ The amendment also included an exemption for CBDCs issued by a central bank or monetary authority that are approved or adopted by Congress or any governmental agency within two years after enactment.

Conclusion

Despite criticism from conservatives about potential overreach from government authorities regarding cryptocurrency regulation, Noem ultimately decided to veto HB 1993 based on concerns about putting South Dakotans at a business disadvantage and creating regulations governing something that does not yet exist. Her decision has been met with praise from those advocating financial freedom within the state.