Oregon Enacts Law to Regulate Digital Assets, Encourages Adoption

Oregon has made a significant move in the regulation of digital assets by enacting Senate Bill 167, which updates the state’s commercial laws to incorporate digital assets into the Uniform Commercial Code (UCC). Governor Tina Kotek signed the legislation on May 7, introducing UCC Article 12. This new article creates a legal framework for digital assets, including crypto assets, tokenized records, and electronic money.

The bill amends Article 9 to allow digital assets to be used as collateral in secured transactions. It also updates several UCC articles to recognize electronic records, signatures, and hybrid transactions, thereby supporting digital commerce. The new law includes transitional provisions that maintain the validity of transactions made before the act’s effective date and provides a one-year period for existing security interests to comply with the new regulations.

Before these changes, there was legal uncertainty about how digital assets fit into existing commercial laws, especially when used as collateral or transferred between parties. The UCC amendments clarify how rights in these assets can be legally controlled, perfected, and enforced. This move addresses the growing complexity and importance of digital assets in the modern economy by providing a clear legal framework for their control and transfer.

In addition to SB 167, House Bill 2071 is another crypto-related bill introduced in Oregon. This proposed legislation focuses on blockchain and digital asset rights, aiming to protect and promote the use of Bitcoin and other digital assets in the state. It seeks to limit regulatory barriers and clarify the legal framework for blockchain-based activities. Some of the highlights of the bill include a prohibition on state and local governments from restricting or impairing a person’s ability to accept digital assets as payment for lawful goods and services, as well as the right to conduct peer-to-peer transactions via blockchain or digital asset networks.

The passage of SB167 is expected to have a significant impact on the digital asset industry in Oregon and beyond. By providing a clear legal framework for the control and transfer of digital assets, the new law is likely to encourage greater adoption and use of these assets. This could lead to increased investment in the digital asset sector, as well as the development of new products and services that leverage these assets.

However, the new law also raises important questions about the future of digital asset regulation in the United States. As more states and federal agencies develop their own regulatory frameworks for digital assets, there is a growing need for coordination and consistency in these efforts. The passage of SB167 in Oregon is a step in the right direction, but it is just one piece of a larger puzzle. In the coming years, it will be important for policymakers to work together to develop a comprehensive and coherent regulatory framework for digital assets that can be applied across the country.