Countdown To The New Digital Asset UCC Rules: Is Your State On Board?

When the Uniform Law Commission and the American Law Institute published the proposed Uniform Commercial Code Amendments (2022) elating to digital assets, they contemplated a gradual phase-in of the rules over a period of at least a year, but no earlier than July 1, 2025. This period was designed to give secured parties time to assess their perfection and priority in such assets under the current UCC and the new changes and to take any necessary actions to preserve or obtain such status under the 2022 amendments.

For most states that have already approved the 2022 amendments, the countdown to July 1, 2025, has begun. However, more than half of the states have not yet approved, or in many cases even introduced, the 2022 amendments. The effects of a nonuniform start date can be confusing, especially for a multistate lender. ThisAlertwill survey the adoption of the 2022 amendments by the states and their effect on the start date rules.