South Dakota Gov. Kristi Noem vetoed Republican legislation that would have excluded cryptocurrency from being considered money, a measure that could have hurt the cryptocurrency economy in the state.
The legislation, HB 1193, was passed by the South Dakota House and Senate last month. The bill would have redefined money as a form of exchange that was “authorized or adopted by a domestic or foreign government.” It also stated that money could not be an “Electronic record” that was used for exchange before the government authorized it.
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Noem quickly moved to veto the legislation, stating that it could hurt South Dakotan business interests.
“By expressly excluding cryptocurrencies as money, it would become more difficult to use cryptocurrency,” wrote Noem in her veto letter. “By needlessly limiting this freedom, HB 1193 would put South Dakota citizens at a business disadvantage.”
I VETOED HB 1193. This bill adopts a definition of ‘money’ to specifically exclude crypto like Bitcoin. And it opens the door to the risk that the federal government could adopt a Central Bank Digital Currency.
South Dakota will always stand for Economic Freedom. pic.twitter.com/yqN2mPPaLj
— Kristi Noem (@KristiNoem) March 10, 2023
“By defining ‘money’ in this proposed way, HB 1193 opens the door to the risk that the federal government could easily adopt a Central Bank Digital Currency, which may become the only viable digital currency,” added Noem. “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.”
Members of the South Dakota Freedom Caucus, a group of conservative lawmakers, praised Noem’s decision.
“I think Gov. Noem is showing the rest of the country what freedom truly means,” State Rep. Tina Mulally told the Washington Examiner.
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The legislation in question was seemingly mundane but had been pushed by local banks for passage, Mulally said.
While Noem’s veto is a significant setback for the legislation, Mulally notes that the legislature could challenge the decision in an upcoming March 27 vote.
