Stoll Keenon Ogden PLLC | Advertising Material
As the role of cryptocurrency continues to evolve in the commercial world, the Uniform Law Commission (ULC) and the American Law Institute (ALI), the sponsors of the Uniform Commercial Code (UCC), have taken thoughtful, meaningful action to address a key question: How can an interest in cryptocur-rency be created and perfected in a uniform way as cryptocurrency’s role on the global stage expands? Cryptocurrency is a type of virtual currency that tracks transactions on a distributed ledger, such as a blockchain, via cryptography. Bitcoin, Ether and Litecoin are types of cryptocurrency. Approximately 16 percent of American adults have used or invested in cryptocurrencies, and its adoption rate in the U.S. and around the world is expected to increase due to the improving ease of and comfort with transactions, security and potential privacy benefits and use as a means to diversify investment portfolios.
In recognition of the changing virtual currency landscape and other emerging technologies, the ULC and ALI formed a joint committee in 2019 to study issues and later draft amendments to the UCC centered on digital assets, bundled transactions and payments. In July 2022, the ULC and ALI approved amendments to the UCC that address a host of matters related to digital assets, including the acquisition of security interests in virtual currency.