Gov. Kristi Noem has signed a bill into law that updates the state’s Uniform Commercial Code.
The UCC is a comprehensive set of laws governing commercial transactions in the United States. Each state adopts the same law, which supporters say is essential for interstate commerce.
The bill passed by lawmakers is similar to one Noem vetoed a year ago.
One difference between this year's legislation and last year's is in the definition of money, which no longer excludes cryptocurrencies if a government adopts one as its currency. That was a concern of the Republican governor's last year.
“In South Dakota, we will always protect the economic Freedom of our people,” said Gov. Noem said in a press release Tuesday. “I VETOED last year’s UCC bill because it limited economic Freedom and put South Dakotans at risk. I’m proud that we have been able to work together over the past year to create legislation that prioritizes our people, their security, and their Freedoms.”
Another difference is this year’s legislation states the updates do not create or adopt a digital currency created by the federal reserve. That would mean banking directly with the federal reserve.
"Nothing in this Act is intended or can be construed to create or adopt a central bank digital currency," a section states.
Because federal law supersedes state law, if the US Federal Reserve adopts such a currency the state would have to accept it.
Noem signed another bill that prohibits the state from accepting central bank digital currencies from other countries.
