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Committee hears SB 252 to update Alaska’s UCC and add rules for controllable electronic records
Summary
Senator Matt Klayman and Uniform Law Commission counsel told the committee that SB 252 adopts the 2018 and 2022 UCC amendments, including Article 12 for controllable electronic records (CERs), to provide legal clarity for cryptocurrencies, NFTs and electronic negotiable instruments and to enable lending and commerce using digital assets.
Senate Bill 252, presented April 27 by Senator Matt Klayman, seeks to update Alaska’s Uniform Commercial Code by incorporating 2018 and 2022 amendments recommended by the Uniform Law Commission and the American Law Institute. The most notable change is the addition of Article 12 to address controllable electronic records (CERs).
Ben Orzewski, chief counsel to the Uniform Law Commission, testified that Article 12 defines when an electronic asset (for example, a cryptocurrency or an NFT) is under a party’s ‘control’ — the functional equivalent of possession for tangible property — and makes CERs negotiable. That legal clarity should reduce litigation risk, make accepting digital payments more practicable for merchants and allow lenders to take CERs as collateral under article 9 revisions.
Orzewski emphasized the UCC’s role as a set of default rules to promote uniform interstate commercial transactions rather than as regulation. He noted that 34 states plus the District of Columbia have adopted the 2022 amendments so far and urged Alaska to modernize its code to maintain interstate uniformity.
Representative Kerrick asked for a plain‑language explanation of the cryptocurrency provisions; Orzewski said the amendments do not require anyone to use digital assets but provide legal certainty for voluntary transactions (for example, when a business accepts a CER as payment and needs to know who has title or control).
The committee did not vote on SB 252; the sponsor and witnesses answered questions and the bill was set aside for further consideration.
