South Dakota Gov. Kristi Noem has vetoed House Bill 1193, which aimed to exclude digital assets, such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), from the definition of "money" in the state's Uniform Commercial Code.
The bill had previously passed in the state Senate and was set to redefine the term of money as an exchange medium authorized or adopted by either a foreign or domestic government.
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In her letter to the members of the House, Noem expressed her concerns about the bill's impact on citizens and businesses in South Dakota.
She emphasized excluding cryptocurrencies as money would limit their use and put citizens at a disadvantage.
"By needlessly limiting this freedom, HB1193 would put South Dakota citizens at a business disadvantage," Noem said.
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Moreover, Noem argued the bill's definition of money could open the door to the risk of the federal government adopting a Central Bank Digital Currency (CBDC) as the only viable currency, and regulating something that does not yet exist would be imprudent.
Therefore, Noem decided to veto the bill, stating "it would be imprudent to create regulations governing something that does not yet exist."
She added, "South Dakota has been a leader in the financial industry for decades, and it should continue to be a leader in this rapidly evolving industry."
Photo: Mehaniq via Shutterstock