Uniform Commercial Code

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A new Article 12 and amendments to Article 9 regarding “controllable electronic records” would govern transactions and security interests in digital assets.

By Lawrence Safran and Deric Behar

On July 13, 2022, the Uniform Law Commission (in partnership with the American Law Institute) approved amendments intended to modernize the Uniform Commercial Code (UCC). The amendments principally cover transactions involving emerging digital asset technologies such as virtual (non-fiat) currencies, non-fungible tokens (NFTs), and digital assets with embedded payment rights, although a…

A sovereign nation’s decision to adopt Bitcoin as legal tender raises interesting questions — and legal ramifications.

By Elena Romanova, Larry Safran, Yvette D. Valdez, Eric S. Volkman, Stephen P. Wink, Adam Bruce Fovent, and Deric Behar

On June 8, 2021, El Salvador’s Legislative Assembly voted to establish Bitcoin as unrestricted legal tender, making El Salvador the first sovereign nation to formally adopt the cryptocurrency. Bitcoin will assume the status as legal tender alongside the US dollar, not as a replacement for it. The US dollar has been the sole legal tender of El Salvador since December 2000, and will remain the country’s reference currency for accounting purposes.

The Bitcoin law, which will come into effect 90 days from its publication in the Official Gazette, holds that the state is obligated to promote financial inclusion and well-being for its citizenry. To that end, the state will promote the necessary training and infrastructure to its citizens to be able to transact in the new legal tender.