Key dealers
- Oregon approved Senate Bill 167 to update commercial laws and include digital assets in UCC.
- The new law allows digital assets to be used as collateral and recognizes electronic items and signatures.
Oregon has adopted Senate Proposal 167 and updated the State’s commercial laws to integrate digital assets into the uniform commercial code (UCC).
The legislationSigned by Governor Tina Kotek on May 7, introduces UCC article 12, which creates a legal framework for digital assets including crypto assets, tokenized items and electronic money.
The bill changes Article 9 to allow digital assets to be used as collateral in secured transactions. It also updates several UCC articles to recognize electronic items, signatures and hybrid transactions to support digital trade.
The new law includes transitional provisions that maintain the validity of transactions made prior to the entry into force of the law and provide one year’s period for existing security interests to fulfill the new regulations.
Before these changes, there was legal uncertainty about how digital assets fit into existing commercial laws, especially when used as security or transferred between the parties. The UCC changes clarify how rights in these assets can be legally controlled, perfected and enforced.
In addition to SB 167, House Bill 2071 is another crypto-related bill introduced in Oregon.
This proposed legislation focuses on blockchain and digital access rights. It aims to protect and promote the use of bitcoin and other digital assets in the state by limiting regulatory barriers and clarifying the legal framework for blockchain-based activities.
Some of the highlights of the bill include a ban on state and local authorities from limiting or impairing a person’s ability to accept digital assets such as payment for legal goods and services, as well as the right to carry out peer-to-peer transactions via blockchain or digital asset networks.
The bill is still in the early stages of the legislative process and has not yet advanced to a vote in neither the Chamber nor the Senate.
Unlike most US states, Oregon legislators have not proposed any legislative proposal to create a state Bitcoin reserve from now on.
