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Ohio sponsors say UCC update will clarify treatment of cryptocurrencies and NFTs
Summary
Sponsors told the Senate Judiciary Committee that House Bill 195 adopts the 2022 Uniform Commercial Code amendments to recognize digital assets as collateral, create rules for controllable electronic records and resolve choice‑of‑law questions; proponents said the bill has broad legal support and passed the Ohio House 83–7.
House Bill 195 received sponsor testimony in the Senate Judiciary Committee as backers described the measure as a targeted modernization of Ohio’s Uniform Commercial Code to account for digital assets such as cryptocurrencies and nonfungible tokens.
Leader Isaacson and Representative Matthews told the committee the bill adopts the 2022 UCC amendments developed by the Uniform Law Commission and the American Law Institute. ‘‘We believe this legislation is a common sense fix that revises Ohio's uniform commercial code to address developments in digital technologies,’’ Leader Isaacson said, noting provisions that create a framework for ‘‘controllable electronic records’’ so digital assets can serve as collateral and for resolving choice‑of‑law questions when assets lack a physical location.
Representative Matthews said the changes promote certainty for businesses, consumers and financial institutions. He told senators the amendments were vetted by hundreds of advisors and are supported by the Ohio State Bar Association, and he noted the bill passed the Ohio House by an 83–7 margin.
The sponsors emphasized the changes are intended to be default rules that parties can alter by contract and to keep Ohio’s commercial law compatible with other states that have enacted the same UCC updates. The committee did not take any vote on the bill during this hearing; the item was recorded as the bill’s first hearing.
