Crypto Commerce Comes to Texas: Making Texas Commercial Law More Competitive in the Digital Asset Economy
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Date
2024-08
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Mosbacher Institute for Trade, Economics & Public Policy
Abstract
Description
As crypto and blockchain-related activity continues growing in Texas, legislative efforts are underway to create a more favorable legal environment. Legal reforms, including the 2022 amendments to the Uniform Commercial Code (UCC) Article 12, enable the creation of "controllable electronic records" that we argue in a recent law review article1 can represent claims in bankruptcy by trade creditors – typically suppliers, contractors, and customers who have little ability to sell their distressed debt claims under current legal rules. By tokenizing these claims on blockchains as "debt tokens," the claims can be freely traded with legal certainty, increasing liquidity. Adopting UCC Article 12 would therefore make Texas an attractive jurisdiction for this kind of claims trading in the digital asset economy.
Keywords
Crypto Commerce, Digital Asset Economy