Efforts to modernize state laws are underway. Notably, the Uniform Commercial Code’s 2022 amendments introduced Article 12, which seeks to provide consistent legal treatment for digital assets and blockchain records. This amendment is designed to establish clear definitions and rules regarding the control and transfer of electronic records, including cryptographic keys. As of November, 25 states have enacted Article 12, with five additional states considering it.
The evolution of state laws on digital assets will continue alongside, and independently from, federal regulatory efforts. As federal reforms unfold, it is essential for businesses in the digital asset space to remain aware of the state-level regulations that will still govern their operations. The interaction between state and federal laws will be a critical factor in shaping the future of digital asset markets in the U.S.
Joseph A. Castelluccio, Justin Herring, and Don F. Irwin are experts in fintech, digital assets, and regulatory law at Mayer Brown LLP, and their insights reflect the continuing importance of state regulations in the digital asset space.
