Re:No one reads the terms of service. Lawmakers want to fix ...
by walterbell on Sunday December 11, 2022 @11:54PM
(#33951026)
Thanks for the reminder. UCC recently introduced Article 12 which covers digital assets like CBDC and cryptocurrency via the category of CER (controllable electronic records). Article 12 says that custody/control of a private key plays a prominent role in seniority of claims against digital assets, including scenarios involving the purchase of possibly-stolen digital assets.
> Article 12 – dealing directly with the acquisition and disposition of interests (including security interests) in “controllable electronic records,” which would include Bitcoin, Ether, and a variety of other digital assets. Under Article 12 and associated amendments to Article 9, a party may perfect a security interest in certain controllable electronic records by obtaining “control” of such records. In addition, Article 12 confers an attribute of negotiability on controllable electronic records – a good faith purchaser for value who obtains control (a “qualifying purchaser”) takes its interest free of conflicting property claims.
https://www.clearygottlieb.com//news-and-insights/publicatio...
> Article 12 – dealing directly with the acquisition and disposition of interests (including security interests) in “controllable electronic records,” which would include Bitcoin, Ether, and a variety of other digital assets. Under Article 12 and associated amendments to Article 9, a party may perfect a security interest in certain controllable electronic records by obtaining “control” of such records. In addition, Article 12 confers an attribute of negotiability on controllable electronic records – a good faith purchaser for value who obtains control (a “qualifying purchaser”) takes its interest free of conflicting property claims.