Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Commercial Law topic
No spam. Unsubscribe anytime.
House committee pushes UCC update to recognize digital assets and 'controllable electronic records'
Summary
Representative Olsen reported H 206 to adopt model Uniform Commercial Code changes including a new Article 12 for controllable electronic records (virtual currency, NFTs) and conforming amendments to secured-transaction and related provisions; committee recommended amendment and the House ordered third reading.
The Vermont House on March 13 advanced House Bill 206, which would update the state's Uniform Commercial Code (UCC) to accommodate digital assets and electronic records, following a presentation by Representative Olsen of Starksboro.
H 206 implements recommended revisions to the UCC developed by the Uniform Law Commissioners and the American Law Institute, including a proposed new Article 12 governing "controllable electronic records" — a statutory category intended to carry forward UCC principles such as control, negotiability and priority to certain electronic assets like some virtual currencies, distributed-ledger tokens and negotiated rights evidenced electronically.
Representative Olsen told members the changes aim to make commercial transactions in new technologies carry forward the policy choices of traditional commerce by defining control (analogous to possession of goods), setting rules for qualifying purchasers, and enabling secured transactions that use controllable electronic records as collateral. The bill also contains conforming edits to Article 9 (secured transactions), the definition of "writing" to include records, the definition of money to incorporate virtual currency, and clarifications for hybrid transactions under Article 2.
The committee's amendment would add the Uniform Law Commissioners' comments to the official annotated statutes (the Vermont Green Book), a customary practice for UCC enactments. The committee heard testimony from Carl Lisman and James Knapp and voted 11–0 to favor the amendment and the bill.
On the floor the House adopted the committee amendment and ordered third reading by voice vote; further legislative action may follow.
