SB157 Summary

• Enacts the 2022 Amendments to the Uniform Commercial Code (UCC) to address emerging technologies including virtual currencies, non-fungible tokens (NFTs), and blockchain-based digital assets.

• Creates new Article 12 defining and governing "controllable electronic records" (CERs) as a new category of digital property, establishing rules for control, transfer, and priority of interests.

• Updates Articles 1-12 and Articles 2-2A of the UCC to recognize electronic transactions as equivalent to paper-based transactions and clarify treatment of hybrid transactions mixing goods with services.

• Revises secured transactions law (Article 9) to address electronic money, digital assets, and chattels papers in electronic form, with new perfection and priority rules for these property types.

• Includes transitional provisions (new Article A) protecting pre-effective-date transactions with a one-year adjustment period, allowing existing secured interests to maintain priority status while parties adapt to new rules.