South Dakota is considering a bill that could redefine what constitutes as money, and potentially disallow Bitcoin and other cryptocurrencies from being classified as such. The proposed amendment to the Uniform Commercial Code states that money must be “authorized or adopted” by a government to be considered a medium of exchange, which would exclude decentralized digital currencies like Bitcoin.
This move has drawn criticism from cryptocurrency advocates, who argue that it is an attempt to establish pro-central bank digital currency (CBDC) states in the US. Dennis Porter, founder of Satoshi Fund, commented on the bill, stating that it could give way to a CBDC, while Andy Roth, President of the State Freedom Caucus Network, warned that it sets a precedent for disallowing Bitcoin in transactions.
This attempt by South Dakota to redefine money is part of a larger debate on how to regulate digital currencies in the US. While some lawmakers have suggested CBDCs as a solution, others argue that they could be used to survey citizens. Congressman Tom Emmer has even introduced a bill to block the Federal Reserve from issuing a CBDC, citing the need to preserve citizens’ financial privacy.
The issue of cryptocurrency regulation has divided the US, with some states taking a pro-crypto approach while others are more cautious. Wyoming, for instance, has passed several pro-crypto laws, including exempting cryptocurrencies from state property taxes and allowing banks to provide custodial services for digital assets. On the other hand, New York has taken a more stringent approach, with its BitLicense requirement forcing many crypto businesses to leave the state.
The South Dakota bill is just one of many similar attempts being made across the US, with some states seeking to establish themselves as crypto-friendly while others are more resistant. The lack of uniformity in crypto regulation has led to confusion and uncertainty for businesses and investors alike.
It remains to be seen whether the South Dakota bill will pass, but its implications could be significant for the cryptocurrency industry. If the bill is successful, it could set a precedent for other states to follow, further dividing the US on the issue of crypto regulation.