New South Dakota Bill is Seen as a Threat to Bitcoin
- Several crypto leaders have slammed the new bill as a threat to Bitcoin.
- If passed, the proposed law will go into effect on July 1, 2024.
Crypto users in the United States believe bitcoin, the foremost cryptocurrency, is facing a huge threat in the US, and their fears were worsened by a bill proposed in South Dakota. The new bill seeks to amend the Uniform Commercial Code (UCC) and restrict cryptocurrencies from being defined as “money.” However, the proposed bill provides a secure pathway for central bank digital currencies (CBDCs) and classifies them as money.
The proposal, which was introduced by Republican lawmaker Mike Stevens, defines money as “a medium of exchange that is currently authorized or adopted by a domestic or foreign government.” The 117-page amendment paper further explains money as a term that includes “a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”
According to the bill,
The term does not include 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 proposed bill was heavily criticized by crypto users and experts alike. Commenting on the bill, Dennis Porter, CEO and co-founder of Satoshi Act Fund, wrote that the bill “would ensure that only governments can create ‘money’ which on its face would exclude all digital assets.”
Interpreting the proposed law, Porter explained that there are attempts to enforce this policy in 21 different states in the US. He further wrote that “there is seemingly a goal to build a bull work of pro-CBDC states that also exclude digital assets like Bitcoin from the definition of money.”
Yaël Ossowski, Deputy Director of the Consumer Choice Center (CCC), said South Dakota’s push would have “minimal teeth, but it’s still a threat to BTC.” Also, Andy Roth, President of the State Freedom Caucus Network, tweeted that the bill was a huge deal that “must be stopped.”
The bill comes at a time when several US regulators are bracing up to regulate the crypto industry.