TN SB1859

Adds new Chapter 6 ("Controllable Electronic Records") to Tennessee's Uniform Commercial Code, establishing legal framework for "controllable electronic records" including rules for control, transfer, and governing law for digital assets

Updates terminology throughout the UCC by replacing "writing" with "record" and "authenticated" with "signed" to accommodate electronic transactions and records

Creates new definitions for "electronic money," "controllable account," and "controllable payment intangible," while explicitly excluding electronic records that function as mediums of exchange from the definition of "money" (addressing cryptocurrency treatment)

Establishes priority rules and perfection requirements for security interests in controllable electronic records, electronic money, and chattel paper with electronic components

Takes effect July 1, 2026, with transitional provisions allowing one year (until July 1, 2025, or one year after effective date) for existing transactions to comply with new requirements