An Introduction To Digital Assets And A Summary Of The 2022 Amendments To The Uniform Commercial Code
Summer 2024 by David A. Gardner |
The rise of digital assets, assets that lack tangibility and exist solely online, created an urgent need for new laws covering transactions involving these assets. These digital assets are being assigned economic value, despite lacking intrinsic value or interest. Essentially, a community of individuals came together and assigned value to various online currencies, pieces of art, or other security-like creations. Seeing the need for specific laws addressing this growing trend, the Uniform Law Commission amended its hallmark act, the Uniform Commercial Code. By introducing the Uniform Commercial Code in 1951, the Uniform Law Commission aimed to standardize interstate commerce. The 2022 Amendments to the Uniform Commercial Code add Article 12, an article strictly designed to address the growing concerns emerging in electronic commerce with digital assets while adapting Article 1 and Article 9 to securitize digital assets. The 2022 Amendments were needed as emerging technology outpaced Article 9’s control. These amendments facilitate the transfer and securitization of digital assets and should be adopted by the States to ensure clarity in the law.
The above is an excerpt from an article by David A. Gardner, a third-year law student at the University of Arkansas at Little Rock William H. Bowen School of Law, published in the Summer 2024 edition of the University of Arkansas at Little Rock Law Review. Upon graduation, David will work as a transactional associate at Quattlebaum, Grooms & Tull while pursuing his LL.M. in Taxation from the University of Florida. You may click the link below to read the full article.