South Dakota Governor Turns Down Crypto Regulation Bid

Legislators cited concerns about the bill’s treatment of crypto, even though the word is never mentioned in the text

article-image

South Dakota Gov. Kristi Noem | mark reinstein/Shutterstock modified by Blockworks

share

South Dakota is keeping its crypto regulatory policy as-is for now. Legislators cited concerns about the bill’s treatment of crypto, even though the word is never mentioned in the text. 

Republican Governor Kristi Noem vetoed House Bill 1193, which would amend the state’s Uniform Commercial Code (UCC) to exclude all digital assets from the definition of money except for a central bank digital currency. 

Noem’s main issue with the proposed law was that it could “pave the way for a government-led CBDC,” she told conservative personality Tucker Carlson earlier this month. 

“I believe it’s to pave a way for the federal government to control our currency, and thus control people,” Noem added. “It should be alarming to people and it’s being sold as a UCC guidelines update.”

The bill never mentions the term CBDC, but it does define “money” as any medium of exchange “currently authorized or adopted by a domestic or foreign government.”

Bitcoin, even though it has been adopted as legal tender in El Salvador, would likely not fit the definition, considering bitcoin is not backed or controlled by El Salvador — or any other government. And bitcoin was created long before El Salvador’s adoption of the asset. 

Money is not “an electronic record that is a medium of exchange recorded and transferable in a system that existed and operated for the medium of exchange before the medium of exchange was authorized or adopted by the government,” the bill said. 

Noem vetoed the bill last week, but the South Dakota House of Representatives opted to uphold the decision Monday evening in a 37-30 vote. The House would need a two-thirds majority to override the veto. 

Other states are looking into similar UCC update bills, Noem said. 

Proponents argue that the changes outlined in the bill say it could have laid the foundation to link governments and cryptocurrencies.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

    Decoding crypto and the markets. Daily, with Byron Gilliam.

    Upcoming Events

    Old Billingsgate

    Mon - Wed, October 13 - 15, 2025

    Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

    recent research

    Research Report Templates.png

    Research

    Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

    article-image

    With $30 million in funding and EverQuest’s creator at the helm, it’s possible, but not guaranteed

    article-image

    As Satoshi-era wallets saw over $8 billion worth of BTC on the move, Congress is gearing up for “Crypto Week”

    article-image

    Bitcoin’s runaway success was partly driven by Slashdot

    article-image

    Blockworks Research data shows that VC spending is back on the rise after a slow May

    article-image

    After rejecting a bid from the AI cloud-computing startup last year, Core Scientific agreed to be acquired in a deal expected to close by Q4 2025

    article-image

    Sponsored

    Plume’s collaboration with TRON will unlock cross-chain RWA yield for one of the world’s largest blockchain ecosystems