The sound money movement is gaining unprecedented traction across the United States, and more and more states are introducing and passing laws to facilitate the use of gold and silver as money. 

Mike Maharrey, journalist and Money Metals Exchange analyst, recently sat down with Jp Cortez, executive director of Money Metals' Sound Money Defense League, to discuss the state of the movement, legislative victories and the ongoing battle against inflationary policies eroding the value of the U.S. dollar.

The Sound Money Defense League: A Decade-long Battle

Founded in 2014 and funded primarily by Money Metals Exchange, the Sound Money Defense League (SMDL) is a national public policy group dedicated to reintroducing gold and silver as legal money. Its mission focuses on eliminating taxes and regulatory burdens that prevent people from using or investing in precious metals.

"Everything else that could function as money has been taxed and disincentivized," Jp Cortez explained, emphasizing how the current monetary system traps people in the Federal Reserve's fiat currency.

Over the past decade, SMDL, with the leading efforts of Jp Cortez, has worked to pass legislation at both the state and federal levels. 

In 2023, their efforts resulted in seven states successfully implementing sound monetary policies, making it their most productive year so far. 

This year, they have already seen a significant increase in statewide participation.

The power of politics at the state level

Maharrey, who also works with the Tenth Amendment Center, noted that interest in sound currency legislation has increased over the past two years, and attributes this to growing public awareness of inflation and currency devaluation caused by federal government policies.

Cortez stressed the strategic importance of focusing on state-level legislation rather than federal initiatives, and explained that grassroots activism can produce real results in state capitals. He noted that state legislators are more accessible to constituents than members of Congress, and that state policy often influences federal action. As evidence of this, he cited the recent legislative boom: 

"Ten years ago, only a handful of states were considering sound money policies. Last year, more than 27 states introduced more than 65 bills related to sound money."

Wyoming's victory in the gold reserve.

One of the most significant victories this year came in Wyoming, where Senate Bill 96 became law without Governor Mark Gordon's signature. The legislation establishes a $10 million gold reserve for the state, safely stored in Wyoming.

However, Governor Gordon expressed his opposition and published a two-page letter criticizing the bill. He argued that gold is not a good investment and stated that its only value is to sell it at a higher price. Despite his reluctance, the legislature's decision sets a precedent for other states considering similar measures.

Wyoming joins Utah and Tennessee in stockpiling gold: Utah holds nearly $50 million in physical gold and Tennessee recently passed legislation empowering its state treasurer to invest in gold. More states join the healthy currency movement

In addition to Wyoming, several other states are making progress:

*North Dakota is considering a bill that would allocate 1% of all state funds to gold reserves, approximately $10 million. The state treasurer was open to the idea, a promising sign.

*Montana is actively reviewing legislation to eliminate all taxes on gold and silver.

*Maine is reintroducing a bill to eliminate the sales tax on precious metals after a narrow one-vote defeat in 2022.

*Kentucky faces a legal battle after its governor unconstitutionally vetoed a bill repealing the state's sales tax on precious metals. This year, lawmakers are reintroducing the repeal and at the same time are introducing measures to establish a state gold reserve and provide a legal avenue for taxpayers to sue the governor for improper taxation.

*Alabama is working on a bill to reaffirm gold and silver as legal tender, following earlier legislative successes that repealed sales and capital gains taxes on precious metals.

These legislative efforts reflect a growing realization that gold and silver provide protection against inflation and currency instability.

Pressure for full audit of Fort Knox Gold

Domestically, the issue of U.S. gold reserves is gaining attention. The United States officially claims to own more than 8,000 tons of gold, making it the largest holder of gold reserves in the world. However, many, including members of Congress wonder if that gold is actually present and unencumbered.

The last comprehensive audit of Fort Knox was conducted in the 1970s, but there was no comprehensive verification. No analysis was performed, no serial numbers were verified, and there was no independent review of the property.

In 2019 and 2021, SMDL worked with Congressman Alex Mooney (R-West Virginia) to introduce the Gold Reserve Transparency Act, which called for a full audit of U.S. gold reserves. The bill emphasized the need for a physical inventory, a review of all transactions involving U.S. gold, and an examination of whether any of the gold has been exchanged, leased, or otherwise encumbered by foreign or financial institutions.

With growing support from figures such as Donald Trump, Elon Musk, Senator Mike Lee and Ron Paul, the push for a full audit is gaining momentum. Cortez warned against another theatrical audit like the one in the 1970s, where selected bullion was displayed on camera without verifying the entire stockpile. He emphasized that U.S. gold holdings must be properly accounted for to restore public confidence in the economy.

The road ahead: grassroots action is key

Cortez and Maharrey stressed that public participation is crucial to promoting sound money policies. The Sound Money Defense League offers an easy way for people to get involved through its legislative action list, which alerts subscribers to relevant bills in their states and provides contact information for key legislators.

The Sound Money Index, published annually by Money Metals Exchange and the Sound Money Defense League, ranks the 50 states based on their sound money policies . Those in states with low rankings are encouraged to take action by contacting their representatives and advocating for tax repeal, gold reserves and legal tender laws.

As Maharrey pointed out, small policy changes are complementing each other, and grassroots action has already resulted in important victories. Now that inflation is eroding the value of fiat money, the fight for sound money is more important than ever.

The battle for sound money is far from over, but with growing public awareness and legislative momentum, states across the country are taking crucial steps toward monetary freedom.

The following are key questions and answers from the Money Metals podcast interview with host Mike Maharrey and Sound Money Defense League executive director Jp Cortez: 

What is the Sound Money Defense League (SMDL) and what is its mission?

The Sound Money Defense League (SMDL) is a national public policy group funded primarily by the Money Metals Exchange. Its mission is to eliminate taxes and regulations that hinder the use of gold and silver as money. The organization works at both the state and federal level to introduce and pass legislation that will allow people to invest and transact in precious metals more easily.

Why is the focus on state-level policy rather than federal policy?

Efforts at the state level are more effective because legislators are more accessible to constituents. Calling a congressman may not get results, but grassroots advocacy at the state level can have an immediate impact. Historically, policy changes at the state level often influence federal action, making this a more strategic approach to promoting sound monetary policies. What was the significance of Wyoming's gold reserve legislation?

Wyoming recently passed a bill creating a $10 million gold reserve, securely stored within the state. The bill became law without Governor Gordon's signature, as he opposed it but chose not to veto it. This decision sets a precedent for other states considering similar measures and reinforces the growing momentum in favor of state-owned gold reserves.

What other states are moving forward with sound money legislation?

North Dakota is considering a gold reserve plan similar to Wyoming's, allocating 1% of all state funds (approximately $10 million). Montana is revising legislation to eliminate all gold and silver taxes. Maine is reintroducing a sales tax repeal bill after an earlier attempt failed by only one vote. Kentucky is challenging its governor's unconstitutional veto of the sales tax repeal and is pushing for additional sound monetary policies. Alabama is working to reaffirm gold and silver as legal tender.

Why is it important to audit U.S. gold reserves (Fort Knox)?

There has not been a credible and comprehensive audit of U.S. gold reserves since the 1970s. Previous audits have only verified external hallmarks rather than verifying the gold bullion itself. There is growing concern about whether the gold is physically present and whether it has been redeemed, leased or otherwise encumbered by financial institutions.

What legislation has been introduced to audit U.S. gold reserves?

The Gold Reserve Transparency Act, originally introduced by Representative Alex Mooney, calls for a full audit of U.S. gold reserves. The bill calls for physical verification, serial number checks, and a full accounting of all financial transactions involving gold. With recent support from Donald Trump, Elon Musk, Senator Mike Lee and Ron Paul, the movement to audit Fort Knox is gaining significant ground.

What role does grassroots activism play in advancing sound monetary policies?

Citizen participation is crucial to pass laws that encourage the rational use of currency. Many bills are ignored unless constituents actively support them. The Sound Money Defense League provides resources to make it easier for people to contact state representatives, sign petitions and support legislative initiatives. Small victories at the state level build momentum for broader policy changes.

Mike Maharrey, JP Cortez, Money Metals