Committee approves UCC update to add 'controllable electronic assets' category

Representative Loubet presented House Bill 474 to modernize Utah’s Uniform Commercial Code by recognizing a fourth asset class, characterizing certain digital holdings as "controllable electronic assets." She said the change clarifies how digital assets are transferred, secured and prioritized, reflecting conversations with the Utah Bankers Association and academic experts.

Howard Headley, president of the Utah Bankers Association, testified in favor, saying the change will make inter‑state and intra‑state commercial transactions easier and noting that roughly 33 other states have adopted similar uniform language. Committee members asked technical questions about ownership, blockchain tracking and whether federal law would be affected; witnesses and the sponsor described the bill as a statutory framework rather than a regulatory change.

Representative Miller moved to adopt the first substitute; the committee adopted the substitute and then favorably recommended the first substitute to the House floor by unanimous vote. The sponsor said she was available to answer technical follow‑up questions after the committee and noted a BYU professor had been consulted to inform the drafting.