Article 12 and the Negotiability of Cryptocurrencies

In July 2022, the Uniform Law Commission published its proposed changes to the Uniform Commercial Code. Central to those changes was the creation of Article 12: a new article intended to govern cryptocurrencies, among other things. The changes, if adopted by states, will steer cryptocurrencies towards the type of negotiability common for instruments under Article 3—a result likely to encourage the use of cryptocurrencies as security devices and concomitantly improve their marketability. This article argues that is a positive movement, and states should adopt the Revisions.