Missed Opportunity: South Dakota Governor’s Veto of Cryptocurrency Bill Deals a Blow to Innovation and Progress!

South Dakota Governor Kristi Noem has vetoed a bill that sought to exclude cryptocurrencies from the definition of “money” under state law. The bill, which was passed by the state’s legislature, aimed to clarify the legal status of cryptocurrencies and make it easier for businesses and individuals to use them for transactions.

If the bill had been signed into law, it would have amended South Dakota’s statutes to exclude cryptocurrencies from the definition of “money” and instead classify them as “property.” This would have made it easier for businesses and individuals to use and transact with cryptocurrencies, as they would not be subject to the same regulations as traditional currencies.

However, Governor Noem vetoed the bill, citing concerns about its potential impact on law enforcement and tax collection. In her veto message, the Governor stated that she supports the development of blockchain technology and cryptocurrencies, but believes that they should be subject to the same laws and regulations as other financial assets.

The Governor’s decision to veto the bill has been met with mixed reactions from the cryptocurrency community. Some believe that it is a setback for the industry, as it could hinder the adoption and growth of cryptocurrencies in the state. Others argue that it is a necessary step to ensure that cryptocurrencies are subject to the same legal framework as other financial assets.

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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

This is not the first time that South Dakota has considered legislation related to cryptocurrencies. In 2019, the state passed a bill that exempted certain cryptocurrency transactions from state sales tax. This move was seen as a positive step towards creating a more favorable regulatory environment for cryptocurrencies in the state.

Conclusion

South Dakota Governor Kristi Noem has vetoed a bill that sought to exclude cryptocurrencies from the definition of “money” under state law. The bill aimed to clarify the legal status of cryptocurrencies and make it easier for businesses and individuals to use them for transactions. The Governor’s decision to veto the bill has sparked debate about the future of cryptocurrency regulation in the state and beyond.

 Image – Gov. Kristi Noem (Anna Moneymaker/Getty Images)

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