Secured Transactions Law and Blockchain-based Tokens

This article discusses the application of the Secured Transactions Law (ST Model Law) to blockchain-based tokens. The article argues that the ST Model Law does not adequately address the unique features of blockchain-based tokens, and that enacting states may need to devise special rules to preserve the negotiability of these tokens.

Here are some of the key questions and answers from the article:

• How does the ST Model Law apply to blockchain-based tokens?
• What are the unique features of blockchain-based tokens that make them difficult to regulate?
• What special rules might enacting states need to devise to preserve the negotiability of blockchain-based tokens?

The article concludes by arguing that enacting states should carefully consider the unique features of blockchain-based tokens before enacting the ST Model Law.