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HB 1353

Commercial Law - Uniform Commercial Code - Controllable Electronic Records

2025 Regular Session Introduced by Adrian Boafo

Maryland adopts UCC Article 12 to establish legal rules for owning, transferring, and controlling digital assets and blockchain-based records in commercial transactions.

Hearing canceled
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Bill Summary · HB 1353

Legislative bill overview

HB 1353 adopts Maryland's version of the Uniform Commercial Code (UCC) Article 12, which establishes a legal framework for "controllable electronic records"—digital assets that can be transferred and controlled electronically similar to physical property. This legislation modernizes commercial law to recognize and regulate new forms of digital assets and blockchain-based transactions that don't fit neatly into existing property or contract law categories.

Why is this important

As digital assets, cryptocurrency, tokenized securities, and other blockchain-based instruments become increasingly common in commerce, businesses and courts need clear legal rules governing ownership, transfer, and dispute resolution. Without statutory clarity, transactions involving these assets exist in legal gray areas, creating uncertainty for businesses and potential disputes over who actually "owns" or controls digital assets. This bill provides uniform standards across states (if adopted broadly) that reduce transaction costs and legal risk.

Potential points of contention

  • Scope of "controllable electronic records": Unclear whether the definition adequately covers emerging digital assets or creates loopholes for novel technologies
  • Regulatory overlap: Potential conflicts with existing financial regulations, securities law, and banking rules that may already govern some digital assets
  • Consumer protection gaps: Questions about whether the framework sufficiently protects individual consumers or small businesses from fraud, hacking, or disputes with larger institutional players

Compiled from official sources — confirm details with the bill’s official record.

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