Noem vetoes cryptocurrency bill, cites potential federal overreach

Model legislation in state commercial and banking laws seeks to regulate "electronic money"

Gov. Kristi Noem vetoed a bill that sought to regulate “electronic money,” her office announced Friday, arguing the measure opens the door to federal overreach.

House Bill 1193 was a sprawling update to the state’s Uniform Commercial Code. The UCC is based on model legislation for commercial and banking laws established by all 50 states in order to harmonize business and banking transactions.

The emergence of cryptocurrencies, such as Bitcoin, has spurred the desire to create regulations to be adopted in state UCC laws.

But Noem said the regulations in House Bill 1193 would establish electronic money that had the backing of central banks while excluding cryptocurrencies from being used as money. That, she said in her veto letter to House Speaker Hugh Bartels, would make cryptocurrencies harder to use and “put South Dakota citizens at a business disadvantage.”

NEWS: Historic sales tax cut earns support in final hours of South Dakota’s winter lawmaking session