Senate orders third reading of UCC overhaul to cover digital assets and hybrid transactions

The Vermont Senate ordered third reading of H.206, a broad update to the Uniform Commercial Code that adds rules for digital assets and modernizes language to account for electronic records and signatures.

Senator Cummings, reporting for Senate Finance, described the bill as a long and technical package that updates UCC provisions to reflect electronic commerce and new asset types. “This seems to be a day for long and technical bills,” Cummings said. The measure creates a new Article 12 governing certain digital assets and defines “controllable electronic records” (CERs) to include cryptocurrencies and other records that function like digital assets. The bill also amends Article 9 to allow a lender who has control of digital assets to perfect a security interest with priority over others who do not have control.

The bill includes rules on tethered assets and electronic money, clarifies governing‑law rules for digital transactions (including a fallback to District of Columbia law if parties do not choose governing law), updates negotiable instrument provisions for digital images, and revises terms such as “writing” and “sign” to encompass electronic records and signatures. The sponsor said transition rules are included and the effective date is July 1, 2025.

Senate Finance reported the bill unanimously (7–0). The sponsor indicated a one‑word technical amendment would be offered before third reading.

The Senate ordered third reading; final passage and any adopted amendments were not recorded in the transcript.