South Dakota gov's veto of cryptocurrency regulations upheld

South Dakota's House failed Monday to override Gov. Kristi Noem's recent veto of a bill that would have created government regulations for the use of cryptocurrency in the state.  

The bill had passed smoothly throughout the legislature, and Noem's veto of last week was upheld on a 37-30 vote. 

Proponents had argued the bill would have centralized different cryptocurrency systems through one government oversight commission, boosting transparency. But opponents saw the proposed regulations as a tool for potential government surveillance and overreach, saying they wanted more time to see how such legislation fares in other states.  

Six other states have passed the Uniform Commercial Code's update, which requires tangible records of cryptocurrency exchanges so that they can be considered money. National commercial standards aim to regulate digital currency exchanges by adding transaction records, but Noem said such a step would take away from South Dakotans’ market freedoms.