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States Begin to Adopt UCC Article 12 Covering Digital Assets
Practical Law Legal Update w-036-4779 (Approx. 3 pages)
States Begin to Adopt UCC Article 12 Covering Digital Assets
by Practical Law Finance
| Published on 01 Aug 2022 • USA (National/Federal) |
Iowa, Indiana, Nebraska, and New Hampshire have recently adopted legislation to give effect to the new Uniform Commercial Code (UCC) amendments that address digital assets, specifically new UCC Article 12.
As a result of emerging technology and digital assets, certain amendments to the Uniform Commercial Code (UCC) have recently been under review. The 2022 amendments to the UCC have been approved by the American Law Institute and the Uniform Law Commission (ULC). The approved act will be reviewed by the ULC's Committee on Style and will then be formally ready for introduction by the states.
The 2022 amendments to the UCC include a new UCC Article 12. UCC Article 12 governs the transfer of property rights in certain digital assets called controllable electronic records (CERs) that have been or may be created by emerging technology. For more information, see Article, Proposed UCC Amendments Relating to Emerging Technology.
The following states have recently adopted amendments to their state's UCC to incorporate provisions relating to CERs:
- On June 13, 2022, Iowa adopted HF 2445.
- On June 24, 2022, New Hampshire adopted N.H. Rev. Stat. § 382-A:12-101 effective as of January 1, 2023.
For more information on Article 12 and the new UCC amendments, see: