South Dakota has decided to retain its current crypto regulatory policy for the time being, citing concerns over the treatment of digital assets in House Bill 1193.
The bill proposed to exclude all digital assets from the definition of money under the state’s Uniform Commercial Code (UCC), except for a central bank digital currency (CBDC).
However, Republican Governor Kristi Noem vetoed the bill, citing her concerns that it could potentially lead to a government-led CBDC.
Noem argued that the bill could pave the way for the federal government to control the country’s currency and people.
The bill defines money as any medium of exchange authorized or adopted by a domestic or foreign government. Therefore, bitcoin, which is not backed or controlled by any government, would not fit the definition.
While some proponents argue that the changes outlined in the bill could have laid the foundation for linking governments and cryptocurrencies, Noem’s main concern was the potential threat of a government-controlled CBDC.
The South Dakota House of Representatives recently voted to uphold the veto, but proponents of UCC update bills continue to be active in other states
