House Bill 181 Summary

• Classifies digital assets (consumer assets, securities, and virtual currency) as intangible personal property subject to Uniform Commercial Code provisions.

• Allows security interests in virtual currency and digital securities to be perfected through possession or control, with possessory interests taking priority over non-possessory interests.

• Permits Idaho banks to provide custodial services for digital assets upon 60 days' notice to the Department of Finance, with customers electing either segregated bailment or transaction-based custody arrangements.

• Establishes the Idaho Utility Token Act, allowing open blockchain tokens with consumptive purposes to be classified as intangible personal property if registered with the Secretary of State for a $1,000 filing fee.

• Grants Idaho courts jurisdiction over claims relating to digital assets and provides definitions for blockchain-related terms including private keys, multi-signature arrangements, and smart contracts.