By: Robert Kientz, Head of Operations – Kinesis Money

Over the years, several other states, including South Carolina, Texas, and Wyoming, followed suit. However, it was not until recently that the initiatives started to look like a nationwide movement.

In 2025, at least 26 states ranging from Alaska to Florida have initiated legislative action to establish or modify state laws defining gold and silver as legal tender. One of the most recent actions involved the signing by Florida Governor Ron DeSantis in May 2025 of a law intended to make gold and silver legal tender and eliminate the sales tax previously levied on their sale.

Why Is the Issue Heating Up?

The spike in legislative activity can be attributed to a number of factors, including frustration with Federal Reserve economic oversight, a desire to elevate states’ rights, and the potential for cashing in on gold’s skyrocketing value.

One of the major factors, however, is the growing need among state governments for more budget funding. Unlike the federal government, states don’t have a printing press they can use to issue the money they need. Their funding is limited to the taxes they collect or the debt they can manage, both of which have been negatively affected by the rate of inflation.

For example, when a state like Florida raises $10 million for a multi-year project to build a new school, it runs out of funds prematurely due to inflation eroding the value of the dollar. Completing the project without cutting back on its scope requires either raising taxes or assuming more debt, both of which may be limited by state laws.

Bringing gold and silver into play provides a form of legal tender whose value is not affected by inflation to the same degree as the dollar. Consequently, state governments, along with everyone else, gain access to a source of funding with better long-term value potential.

Do States Have the Power to Enact Legal Tender Laws?

Under the US Constitution, states don’t have the right to coin money or regulate its value. That is an authority afforded only to the US Congress.

However, states do have the right to recognize gold and silver as legal tender. Provided the federal government mints the gold and silver being used, it is legal for states to designate it as a valid form of payment within their jurisdiction. American Gold Eagle coins and American Gold Buffalo coins, which are currently minted annually in the US, are two examples of coins that could be used as legal tender.

To date, the federal government has officially said little about the proliferation of legal tender laws, but if their passage leads to practical applications, it could spark concerns over the emergence of a competing currency. At that point, the federal government may ask courts for clarification or relief.

How Will Consumers Be Affected?

Generally, the state legal tender laws being passed are non-compulsory. They give citizens the right to exchange gold and silver to satisfy debts, but they don’t make it mandatory that the metals be accepted.

In states where laws are being passed, consumers should expect to see language related to gold and silver appearing in rental and other business contracts. Gold and silver clauses, which were popular prior to the phasing out of the gold standard, will begin to reappear as a means of stipulating whether gold and silver will be accepted as a means of satisfying the terms of the contract.

For investors, the most immediate and tangible benefit will be the elimination of sales tax on purchases of gold and silver bullion, which reduces the cost of entry for gold and silver investing by doing away with the immediate loss that sales tax imposes. It also levels the playing field in the investing space, putting gold and silver in the same category as common vehicles like stocks and bonds.

Overall, many proponents hope the new wave of legal tender laws will usher in a system that stabilizes finance in the US, as the US dollar is no longer viewed as “honest money” in some circles due to the profligate spending of the US federal government. Legal tender that is minted rather than printed promises to provide an alternative that is less susceptible to government manipulation and, consequently, more stable.

– Robert Kientz, Head of Operations for Kinesis Money, is responsible for building the American market for Kinesis precious metals, gold bills, and jewelry segment businesses. He is also the founder and editor of Gold Silver Pros – a research and educational website dedicated to precious metals. Kientz’s work has been featured on Yahoo Finance, Market Watch, Seeking Alpha, Talk Markets, Stockhouse, Mining Feeds, APMEX, GoldSeek, Financial Sense, Technically Speaking, Silver Doctors, and many more publications.