Oregon’s Senate Bill 167, signed into law on May 7, 2025, updates the Uniform Commercial Code (UCC) to recognize digital assets like cryptocurrencies as legal collateral for loans, enabling individuals to borrow against their crypto without selling it.
The law introduces UCC Article 12, which defines digital assets—including crypto, tokenized records, and electronic money—and allows their use in secured transactions, addressing previous legal uncertainties around digital commerce, according to cryptobriefing.com’s coverage on May 8, 2025.
This development aligns with a growing trend of crypto integration into financial systems, as seen with SALT Lending’s Bitcoin-backed loans since 2016, which have originated over $575 million without collateral losses, highlighting the practical impact of such legal clarity (saltlending.com, January 17, 2025).
