Last week, Governor Kristi Noem (R-SD) vetoed South Dakota House Bill 1193. For doing so, she should be applauded for taking a proactive stance against this misguided effort.
HB 1193 would redefine the definition of money to exclude digital currencies like Bitcoin. Worse, the bill would have amended South Dakota’s Uniform Commercial Code to recognize Central Banking Digital Currencies (CBDC) as money.
Calling it an “attack on economic freedom,” the governor didn’t mince words about the legislation.
“HB 1193 adopts a definition of ‘money’ to specifically exclude cryptocurrencies like Bitcoin, as well as other digital assets. At the same time, these UCC revisions include Central Bank Digital Currencies as money,” wrote Governor Noem in a press release on the veto. “By expressly excluding cryptocurrencies as money, it would become more difficult to use cryptocurrency. By needlessly limiting this freedom, HB 1193 would put South Dakota citizens at a business disadvantage.”
Noem added, “At this moment in time, such a government-backed electronic currency has not been created. It would be imprudent to create regulations governing something that does not yet exist. More importantly, South Dakota should not open the door to a potential future overreach by the federal government.”