Floating Liens Over Crypto-in-Commerce

Authors

Christopher K. Odinet, Texas A&M University School of LawFollow
Andrea Tosato

Document Type

Article

Publication Date

2023

Journal Title

Indiana Law Journal

ISSN

0019-6665

Abstract

Commercial law and crypto are colliding. Against the backdrop of explosive growth (and discord) in the digital asset market, there has been a series of recent revisions to American commercial law aimed at addressing new and emerging technologies. These changes to the Uniform Commercial Code (UCC) are designed to facilitate the buying and selling of digital assets as well as their use as collateral. However, to date, the literature exploring these changes has mainly focused on understanding the basics of the new regime. This Essay moves beyond that baseline by showing how the UCC amendments can be used to structure more complex secured credit arrangements that tap into the borrowed capital potential of blockchain technology. Specifically, this study explains how these recent law reforms—in concert with the inherent capabilities of distributed ledgers, smart contracts, and cryptography—can be used to create a floating lien (the quintessential financing device in American commercial law) over crypto inventory.

First Page

367

Last Page

390

Num Pages

24

Volume Number

99

Issue Number

1

Publisher

Indiana University School of Law - Bloomington

Recommended Citation

Christopher K. Odinet & Andrea Tosato, Floating Liens Over Crypto-in-Commerce, 99 Ind. L.J. 367 (2023).
Available at: https://scholarship.law.tamu.edu/facscholar/2073

File Type

PDF