U.S. State Law Excludes Crypto in Definition of Money

The noose around crypto continues to tighten in the U.S.

A proposed law from South Dakota, a state in the United States, has made a point to exclude cryptocurrencies from the state’s definition of money.

The bill, primarily proposed in February by Representative Mike Stevens, acting speaker of the House, passed in the Senate yesterday with 24 votes in favor. Notably, it expands the state’s definition of money to include a clause that effectively outlaws the definition of cryptocurrencies as money.

“The term [money] 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 newly added clause reads.

In a tweet today, Dennis Porter, chief executive officer of Satoshi Action Fund, drew the crypto community’s attention to the situation claiming that it was a ploy to prepare the way for central bank digital currencies. In addition, the co-founder of the non-profit advocacy group asserts that there is a push to adopt this policy in 21 states in the U.S.

CryptoLaw founder Attorney John E. Deaton sharing Potter’s tweet, asserted that crypto’s fight against the legacy finance system also extended to the state level.

The fight against the legacy system, its incumbents, and their agents – serving in legislative bodies and regulatory agencies – is at both the federal and state levels. https://t.co/ADoMhT7Nij

— John E Deaton (@JohnEDeaton1) March 2, 2023

The latest development comes as the U.S. Securities and Exchange Commission and other federal regulators appear to be tightening the noose around crypto. 

“We’re in active litigation in cases raising the application of our securities laws to crypto assets,” the SEC said in a statement, according to FOX Business journalist Eleanor Terrett. “Our Enforcement division has been quite successful so far, and we look forward to additional court decisions on these issues.”

SEC’s statement on its crypto enforcement cases:

“We’re in active litigation in cases raising the application of our securities laws to crypto assets. Our Enforcement division has been quite successful so far, and we look forward to additional court decisions on these issues.” https://t.co/47PtMxAwIz

— Eleanor Terrett (@EleanorTerrett) March 1, 2023

Meanwhile, amid all of these, Coinbase has launched a nationwide advocacy effort to dissuade policymakers from engaging in a broad industry crackdown. As highlighted in a report today, the initiative dubbed Crypto 435 would target policymakers in all 435 Districts in the U.S., offering contact information and data on policymakers to interested community members.

In a recent CNBC Squawk Box interview, Coinbase Chief Executive Officer Brian Armstrong stressed the need for new and clear rules for the nascent market. Notably, Armstrong has also authored an op-ed asserting that the current approach of regulators is pushing business abroad, hurting America’s geopolitical standing. 

Coinbase sharing excerpts from the interview reiterated findings from a recent survey it sponsored that claimed the financial system favored the interest of a few elites alone.

The U.S. financial system doesn't serve everyone equally—it's time for an update. @SquawkCNBC @andrewrsorkin https://t.co/5arQzSZyw3

— Coinbase (@coinbase) March 1, 2023