Faculty Journal Articles and Book Chapters
ORCID (Links to author’s additional scholarship at ORCID.org)
Abstract
Over the course of a three-year, collaborative process that was open to the public, the Uniform Law Commission (ULC) and the American Law Institute (ALI) undertook a project to revise the Uniform Commercial Code (UCC) to account for the impact of emerging technologies on commercial transactions. The amendments, approved jointly by the ULC and ALI in July 2022, touch on aspects of the entire UCC, but one change has inspired ire and attracted national media attention: a proposed revision to the definition of “money.” The 2022 UCC Amendments alter the definition of “money” to account for the introduction of central bank digital currencies, such as the Bahamian Sand Dollar, and create a separate asset classification category for cryptocurrencies such as bitcoin—the controllable electronic record. Opponents of this change state concern that the UCC seeks to “ban” cryptocurrency or otherwise advantage central bank digital currencies and disadvantage cryptocurrencies. This essay examines this dispute over the 2022 UCC Amendments, and argues that it stems from a misunderstanding of core commercial law concepts. Ultimately, it seems, diminishing familiarity with commercial law—a side effect of expanding reliance on emerging financial technology products—stands as a key obstacle to the enactment of a legal changes designed to give the objectors the very legal effects they desire.
Publication Title
Northwestern University Law Review Online
Document Type
Article
Keywords
commercial law, bitcoin, UCC, Universal Commercial Code, money, secured transactions
Recommended Citation
Carla L. Reyes, Emerging Technology's Unfamiliarity with Commercial Law, 119 Nw. U. L. Rev. Online 31 (2024)
