US Law Association Asks States to Withdraw Virtual Currency Model Act

US Law Association Asks States to Withdraw Virtual Currency Model Act

The Uniform Law Commission yesterday called upon US states who were considering its proposed model act for dealing with virtual currencies to hold their horses from enacting legislation, pending the findings of a new joint committee studying the impact of new technology on commercial law.

Forbes first reported what it termed as “seismic news“; ULC has been asked to join the new joint study committee alongside members of the American Law Institute. Together, they will study the impact of emerging tech, including blockchain, on the Uniform Commercial Code, which is a model state law governing commercial transactions in the US.

While US states like Wyoming and Missouri have already enacted laws (and at the same time rejected UCL’s models), the news still bears significance. The states of California, Hawaii, Nevada and Oklahoma are currently moving bills into legislation, based on ULC’s terminology for two laws, called the Uniform Regulation of Virtual Currency Businesses Act (URVCBA) and Supplemental Act. Others like Rhode Island were only considering the former.

This latest UCL call itself, apparently, was part of a direct 3-page written response to a Forbes article published earlier this month, in which ex-chief of the Delaware Blockchain Initiative Andrea Tinianow slammed the Supplemental Act, and supported Wyoming’s stance. It had asked for a correction of what it deemed erroneous statements, although Tinianow insists she had represented facts accurately.

This is only the latest development in the US legal scene, with growing rifts in opinion on how the law should perceive blockchain technology and virtual currencies like Bitcoin. It appears that UCL and others have taken this into consideration and this could explain the new joint study commission.

In its statement, it appears to invite more participants to join:

“The committee welcomes participants from states that wish to be involved in its work and from individuals and groups with a stake in the development of appropriate laws to govern digital-asset transactions.”

 

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