Bitcoin [BTC] to not fall under ‘money’ in the US? According to…
- The state of South Dakota is attempting to redefine what constitutes money, focusing specifically on the classification of cryptocurrencies.
- Reportedly, the move can be interpreted as a stab at Bitcoin.
The state of South Dakota is attempting to redefine what constitutes money, with a particular focus on the classification of cryptocurrencies.
Bitcoin under fire
According to the bill, titled “An Act to Amend Provisions of the Uniform Commercial Code,” digital currencies such as Bitcoin [BTC] will be excluded from the definition of money because they are created by individuals or organizations. Only a medium of exchange authorized or recognized by a government came under the definition of money.
BREAKING: The state of South Dakota is trying to pass a bill that would foreclose #Bitcoin from the definition of “money”, while providing a safe path for CBDCs. pic.twitter.com/V6FCNM6Fm5
— Dennis Porter (@Dennis_Porter_) March 2, 2023
According to the bill:
“The term does not include an electronic record that is a medium of exchange registered and transferable in a system that existed and operated for the medium of exchange before the authorities approved or adopted the medium of exchange.”
Andy Roth, president of the State Freedom Caucus Network, commented on Twitter that the move “must be stopped” before it reached other US states.
This is a huge deal. The UCC creates the framework for CBDCs to be accepted (and #bitcoin refused) via Amazon and all other retailers. All digital transactions.
This must be stopped. The good news is that we still have a chance to kill this in the other 49 states.
— Andy Roth (@andyroth) March 2, 2023
The law would ensure that only governments can create money, which appears to exclude all digital assets. The legislation mentions that no medium of exchange is money unless the government has approved or adopted the medium of exchange.
Crypto regulation remains a contentious issue
Porter claimed that the worst part of the development is that this policy will be implemented in 21 different states across the United States. It appears to be aimed at assembling a ring of pro-CBDC states that also exclude digital assets such as Bitcoin from the definition of money.
However, it is worth noting that Bitcoin gained support in several US states. This support came primarily because of the Satoshi Act Fund. Texas, New Hampshire and Montana are just a few US states that have passed Bitcoin-friendly legislation.
