Oregon Enacts Digital Asset Law
Oregon Enacts Landmark Digital Asset Legislation
Oregon has taken a significant step towards clarifying the legal landscape for digital assets with the passage of Senate Bill 167 (SB 167). Signed into law on May 7th, SB 167 integrates digital assets into the Uniform Commercial Code (UCC), addressing long-standing uncertainties surrounding their legal treatment.
Key Provisions of SB 167
- UCC Article 12: Establishes a comprehensive legal framework for digital assets, encompassing cryptocurrencies, tokenized records, and electronic money.
- Article 9 Amendments: Allows digital assets to serve as collateral in secured transactions, providing increased flexibility for lending and borrowing.
- Electronic Records and Signatures: Updates the UCC to explicitly recognize electronic records and signatures, streamlining digital commerce.
- Transitional Provisions: Ensures the validity of pre-existing transactions and provides a one-year grace period for existing security interests to adapt to the new regulations.
Prior to SB 167, legal ambiguity hampered the use of digital assets in commercial contexts, particularly regarding collateralization and transfers. The bill's UCC amendments offer much-needed clarity, enabling legal control, perfection, and enforcement of rights related to these assets.
House Bill 2071: Furthering Blockchain Adoption in Oregon
In addition to SB 167, Oregon is also considering House Bill 2071 (HB 2071), a separate bill focused on blockchain and digital asset rights. This legislation aims to foster the use of Bitcoin and other digital assets within the state by reducing regulatory barriers and enhancing the legal clarity around blockchain activities. Key highlights include:
- Protection of Digital Asset Payments: Prevents state and local governments from prohibiting the acceptance of digital assets for legal goods and services.
- Peer-to-Peer Transaction Rights: Safeguards the right to engage in peer-to-peer transactions using blockchain or digital asset networks.
HB 2071 is currently in the early stages of the legislative process.
Oregon's proactive approach to digital asset regulation stands out compared to many other US states. This commitment to creating a supportive and legally defined environment for digital assets reflects a forward-thinking approach to the evolving blockchain landscape.
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