Senator Greg Rothman’s (R-34) legislation to modernize the Uniform Commercial Code (UCC) has been signed into law by the governor. Act 41 of 2024, which received unanimous support in both the Senate and the House of Representatives, extensively revises the UCC to accommodate emerging technologies utilized in commercial transactions.
The updates provided by Act 41 are “necessary to ensure security, consistency and confidence,” Rothman said. The UCC has been providing consistency for commercial law and interstate commerce since 1954 when Pennsylvania led the initiative to adopt it. It has since been adopted by all states and gives Americans legal confidence when transacting business across state lines. The last major revisions to the UCC took effect in 2001. In the two decades since, electronic property, or digital assets, have become much more prevalent in commercial transactions.
Act 41 brings the law into the 21st century by establishing guidelines to cover digital asset transactions involving virtual currencies, non-fungible tokens, electronic accounts, and other forms of electronic commerce. The legislation would also make other needed technical updates to the UCC.
“The UCC provides security and consistency to our nation’s commerce,” Rothman said. “I’m pleased that digital asset transactions are now properly addressed in law so that all parties are protected and can operate with confidence.”
Visit senatorrothman.com for more information.
