Today with bipartisan support the Senate passed legislation authored by Senator Michael Kreun (R-Blaine) that amends and updates the Uniform Commercial Code (UCC). This bill provides revisions to the UCC to accommodate emerging technologies.

Originally created in 1952, the UCC is a comprehensive set of laws governing all commercial transactions, and makes transactions done across state lines easier and more streamlined for businesses. It has been adopted in all 50 states as well as D.C. and allows for seamless interstate business transactions to occur across the country. The UCC was adopted in Minnesota in 1965, and this legislation signifies the first significant update to it since 2012.  

Included in this update is a new Article 12 which will modernize and clarify existing commercial law for the transfer of property rights in digital assets, cryptocurrencies, Non-Fungible Tokens, and other similar assets. The bill also amends Article 9 by establishing a framework to create perfection and security interest in digital assets, creates new rules for hybrid transactions, updates rules for electronic negotiable instruments, and updates terminology relating to electronic signatures in documents. 

“Many things have changed since 2012, which was the last time the UCC was updated, and this bill accommodates new emerging technologies into our commercial transactions,” said Kreun. “In passing this bill, we are allowing commercial transactions to remain as efficient as possible. These simple updates will help grow our economy and maximize its success.”