Ohio Enacts HB 195, Modernizing the UCC for Digital Assets
Summary
- HB 195 adds a new Article 12 to the Ohio UCC, creating "controllable electronic records" (CERs) as a category covering cryptocurrency, NFTs, and similar digital assets.
- Lenders can now perfect a security interest in a CER by obtaining control of it, rather than relying solely on a financing statement, and control gives the secured party priority over competing claims.
- A good-faith purchaser who obtains control of a CER takes it free of competing property claims, mirroring protections long available for negotiable instruments and investment securities.
- The law takes effect in early October 2026. For lenders and businesses holding or transacting in digital assets, HB 195 provides a workable framework for taking crypto as collateral where none existed before.
Ohio has joined a growing number of states updating their commercial law to address digital assets. On July 7, 2026, Governor DeWine signed House Bill 195, which revises the Ohio Uniform Commercial Code (UCC) to incorporate the 2022 amendments developed by the Uniform Law Commission and American Law Institute. The Ohio State Bar Association was the principal proponent of the legislation. HB 195 takes effect 90 days after enactment, placing the effective date in early October 2026.
What the Bill Does
HB 195 makes several changes relevant to lenders, businesses, and anyone transacting in cryptocurrency, NFTs, or other digital assets.
- A new Article 12 for digital assets. The bill adds Article 12 to the Ohio UCC, creating a legal framework for “controllable electronic records” (CERs), a category that includes cryptocurrency, NFTs, and similar digital assets. Article 12 establishes rules for how rights in these assets are transferred and clarifies what it means to have “control” of a CER, a concept borrowed from the existing rules for investment securities.
- Perfection of security interests by control. Corresponding changes to Article 9 allow a lender to perfect a security interest in a CER by obtaining control of it, rather than relying solely on filing a financing statement. A secured party with control also receives priority over competing claims to the asset.
- A negotiability feature for good-faith purchasers. Article 12 extends a negotiability-like protection to CERs: a good-faith purchaser for value who obtains control of a CER (a “qualifying purchaser”) takes the asset free of competing property claims.
A narrower definition of “money.” The bill expands the UCC definition of “money” to include government-issued virtual currencies, such as a central bank digital currency, but does not extend that status to privately issued cryptocurrencies like Bitcoin. Those assets may still qualify as CERs under Article 12, but they are not treated as “money” for UCC purposes.
Why It Matters
For financial institutions, HB 195 gives lenders a workable path to take digital assets as collateral, something the prior UCC framework did not clearly support. Borrowers with meaningful digital asset holdings may now find it easier to use those assets to secure financing in Ohio. For businesses and individuals holding or transacting in digital assets, the new control and negotiability rules bring more certainty to questions of ownership and priority that previous law left unaddressed.
Ohio’s approach tracks the ULC’s 2022 amendments and is broadly consistent with legislation already adopted in other states, including New York’s version of the same amendments, which took effect in June 2026. Businesses operating across state lines should confirm how each relevant state has implemented the amendments, since local variations are possible.
Looking Ahead
HB 195 takes effect in early October 2026. Lenders and businesses that deal in digital assets should begin reviewing loan documentation and internal processes now to take advantage of the new control-based perfection rules once the law is in force.
We’ll continue to monitor developments as the October effective date approaches. In the meantime, if you have questions about how HB 195 affects your business or your loan documentation, contact Matt Zofchak or Maria Guthrie.
