A new issue of The Takeaway examines making Texas commercial law more competitive in the digital asset economy.
COLLEGE STATION, TX (August 27) – As crypto and blockchain-related activity continues growing in Texas, legislative efforts are underway to create a more favorable legal environment. The most recent issue of The Takeaway, “Crypto Commerce Comes to Texas: Making Texas Commercial Law More Competitive in the Digital Asset Economy,” explains that recent legal reforms to the Uniform Commercial Code (UCC) create “controllable electronic records,” which the article argues 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. The article maintains that by tokenizing these claims on blockchains as “debt tokens,” the claims can be freely traded with legal certainty, increasing liquidity. The author urges Texas to adopt the UCC reforms to make the state an attractive jurisdiction for this kind of claims trading in the digital asset economy.
The article was written by Christopher Odinet, Professor of Law, Affiliate Professor of Finance, and a Mosbacher Institute Research Fellow at Texas A&M University.
The Takeaway is a publication of the Mosbacher Institute for Trade, Economics, and Public Policy at the Bush School of Government & Public Service at Texas A&M University.
