Statehouse Update: OBL Testifies in Support of HB 195 (UCC Digital Assets Modernization)

04/01/26

The Ohio Bankers League recently provided proponent testimony before the Senate Judiciary Committee on House Bill 195, bipartisan legislation sponsored by House Minority Leader Dani Isaacsohn (D-Cincinnati) and Representative Adam Mathews (R-Lebanon) that would modernize Ohio's Uniform Commercial Code (UCC) to address digital assets.

The bill, which previously passed the Ohio House by a strong bipartisan vote of 83-7, received its second hearing in the Senate Judiciary Committee last week. OBL's SVP of Government Relations and General Counsel, Don Boyd, provided testimony in support of the legislation.

You can read OBL's testimony HERE .
You can view the hearing testimony HERE on the Ohio Channel at the 1:04:13 mark.

What HB 195 Does

House Bill 195 adopts nationally developed updates to the UCC, including the creation of a new Article 12, which establishes a legal framework for transactions involving certain digital assets referred to as "controllable electronic records" (CERs).

These updates are based on model legislation from the Uniform Law Commission and are designed to ensure that commercial law keeps pace with emerging technologies and evolving financial transactions.

Why It Matters for Banks

In testimony, OBL emphasized that HB 195 provides critical clarity for lenders and the broader financial services industry by:

• Modernizing commercial law to reflect the increasing use of digital assets and electronic records
• Establishing clear rules for the perfection and priority of security interests in digital assets
• Allowing lenders to perfect an interest in digital collateral through "control," similar to possession of traditional collateral
• Supporting the responsible expansion of lending opportunities involving new forms of value

As noted in the testimony, current law creates uncertainty for lenders considering digital assets as collateral. HB 195 addresses this gap and provides a more predictable legal framework for secured transactions.

Maintaining Ohio's Competitive Position

OBL also highlighted the importance of maintaining uniformity with other states. More than 30 states have already adopted similar UCC updates. Without action, Ohio risks falling behind, potentially increasing costs and complexity for Ohio borrowers and lenders.

By adopting these changes, Ohio will remain aligned with national commercial law standards and continue to be an attractive jurisdiction for lending and investment.

OBL Position

The Ohio Bankers League supports House Bill 195 as a commonsense modernization of Ohio law that:

• Enhances legal certainty
• Supports innovation in commercial lending
• Reduces transaction friction
• Strengthens Ohio's economic competitiveness

OBL will continue to engage with legislators as the bill advances through the Senate.