亚开行-数字资产导论（英）

CROSS-BORDERSETTLEMENTINFRASTRUCTUREFORUMBRIEFNo.3

ANINTRODUCTIONTODIGITALASSETS

AUGUST2024

Introduction

TheCross-BorderSettlementInfrastructureForum

(CSIF)isaprogramundertheAsianBondMarkets

Initiative(ABMI)thataimstoenhancefinancialmarketinfrastructureintheregionoftheAssociationof

SoutheastAsianNationsplusthePeople’sRepublicof

China,Japan,andtheRepublicofKorea—agroupingcollectivelyknownasASEAN+3.CSIFregularly

collaborateswiththeASEAN+3BondMarketForum(ABMF),anotherABMIinitiative.1

CSIFpromotessafeandefficientcross-borderfinancialtransactions,includingusinglocalcurrencybondsas

collateralandaddressingpaymentandsettlement

systemsissues.Itservesasaplatformfordialogue

amongpolicymakersandoperatorsofbondandcash

settlementinfrastructuretofacilitatecross-borderbondandcashsettlement,andtodevelopcommonprinciplesandmodelsforregionalfinancialmarketinfrastructures.

TheABMIMedium-TermRoadMap2023–2026

emphasizes“digitaltransformation”asakeystrategyforintegratingandstandardizingASEAN+3bondmarkets.

ABMImembers,includingCSIFmembers,areincentivizedtointroducenewtechnologiesand

businessmodels,suchasdistributedledgertechnology,thatcanimpactthefunctioningoffinancialmarket

infrastructuresandthedigitalassetstheyenable.

MostASEAN+3economieshavejustbeguntodiscussnationallegaldefinitionsfordigitalassets.However,

becauseofthevaryingfunctionsandpropertiesofnewly

HIGHLIGHTS

Thereappearstobenouniversaldefinitionofdigitalassets;instead,nationalandinternationalstandard-

settingbodiesofferdiversedefinitions.Digitalassets'uniquecharacteristics,inherentlydifferentfeatures

andrisks,andthevaryingperspectivesofstakeholderscreatedifferentapproachesandpreferencestonewlyemergingdigitalassetssuchasBitcoin.

Definitionsprovidedbyinternationalstandard-settingbodiesappeartoreflecttheirregulatorypurview,

purpose,andneeds,focusingoncross-border

transactions,owingtothefactthatdigitalassetsmaynotbeboundtoaparticularplaceofbusiness.

However,businessoperationsrelatedtonewly

emergingdigitalassetsarestillevolving.Besides,theremaybepolicyconsiderationstodefinethem

differentlyfromtheexistinglegalframeworkinordertopromotethem.Assuch,itwouldbedifficultto

expectauniformdefinitionorexplanationfordigitalassetsanytimesoon.

TheInternationalInstitutefortheUnificationof

PrivateLaw’sPrinciplesonDigitalAssetsandPrivateLawofferacomprehensivelegalunderstandingof

digitalassets,includingnotonlynewlyemerging

crypto-assetsbutalsoelectronicrecordssuchas

e-paymentsanddematerializedsecurities,andtheyintroducetheconceptoflinkedassetstoallowtyingdigitalassetstoexistinglegalframeworks.These

principlesalsofocusonthelegalcertaintyandpredictabilityofdigitalassettransaction.

1TheABMFwasestablishedundertheABMIinMay2010bythefinanceministersofASEAN+3.TheABMFistheonlyregional

platforminwhichactionsandrecommendationsarereportedforASEAN+3policydiscussions.ItfunctionstointegrateASEAN+3

marketsthroughthestandardizationandharmonizationofregulationsandmarketpractices,aswellasmarketinfrastructuresrelatingtocross-borderbondtransactions.ABMFmemberscomprisenationalofficialsandexperts,aswellasinternationalexperts,andare

drawnfrompublicandprivatesectororganizations.

2AnIntroductiontoDigitalAssets

emergingdigitalassetsandthecomplexityinvolvedinthetechnologiesneededtorealizethem,financial

regulatorsarestrugglingwithhowtocaptureand

recognizeownership,andhowtotransferandproperlyregulatedigitalassets.Thispresentsachallengein

internationalmarketsandacrossregionswheredigitalassetsmaybedefinedinadifferentmanner,depending

onlegaltradition(e.g.,civillaworcommonlaw)andpractices,orthepurposesandviewpointsofthe

institutionsandauthoritiesregulatingtheseassets.

Therefore,itisworthconductingacomparativeanalysisofdigitalassetdefinitionsbydifferentauthoritiesand

regionsasafirststep,whichwillbefollowedbythe

analysisofspecificaspectsofdigitalassetsin

subsequentCSIFbriefs.Thisbriefaimstoreviewthe

differentdefinitionsofdigitalassets,showtheirvarianceandinfluencingfactors,andhighlightsomeofthebasiccharacteristicsofdigitalassets.Whiletheinformation

andexplanationswilltrytocoverdigitalassetsinmanyformsandfunctions,theemphasiswillcontinuetobe

ondigitalassetsrelatedtopayments,bonds,orthe

capitalmarketatlarge,andwithrelevancetoABMFandCSIFsubjects.

TheAsianDevelopmentBank(ADB),ABMF,andtheCSIFSecretariatwouldliketoexpresstheirgratitudetotheABMFandCSIFmembersandobservers,aswellassubjectmatterexperts,fortheirinformation,support,review,andadviceincompilingthisseriesofbriefs.2

DiverseUseofTerminologyRelatedtoDigitalAssets

Digitalassetsarereferredtobymanyterms—includingcrypto-asset,cryptocurrency,digitalcurrency,virtual

asset,virtualcurrency,orvirtualmoney—withthese

termsoftenbeingchallengingtounderstandorclassify.

Althoughwordssuchasvirtualcurrencyand

cryptocurrencyarecommonlyusedworldwide,theydonotnecessarilyhaveclear,commondefinitionsthat

complywithorareapplicabletoajurisdiction'slawsandregulations.Differentspellingvarieties—forexample,

crypto-assetscanalsobereferredtoas“cryptoassets”or“cryptoassets”—alsoaddtothelonglistofterms

usedtodescribedigitalassets.Thedistinctionsareoftenmarginalandmaydependonthecontext,nature,and

focusofthedefiner.3

Cross-BorderSettlementInfrastructureForum

TheAsianBondMarketsInitiative(ABMI)was

launchedin2003bythefinanceministersofthe

AssociationofSoutheastAsianNationsplusthe

People’sRepublicofChina,Japan,andtheRepublicofKorea—agroupingcollectivelyknownas

ASEAN+3—toboostthedevelopmentoflocal

currencybondmarkets.TheAsianDevelopment

BankhasbeenactingastheABMISecretariatsinceitsinception.

TheCross-BorderSettlementInfrastructureForum,whichhascentralbanksandcentralsecurities

depositories(CSDs)asmembersandASEAN+3governmentofficialsasobservers,isasubforum

underABMIthatpromotesmoreactiveintraregionalportfolioinvestmentsbycreatinganefficientregionalsettlementintermediary.

Cross-bordertransactionsinbondsandother

securitiesarecurrentlyprocessedthrough

custodiansandacorrespondentbankingnetwork

(dependingoncurrency),generatinganinevitable

timelagbetweenthetimeoftradeandthedeliveryofsecuritiesandmoney,thusincreasingcreditandsettlementrisks.Toaddressthisproblem,theCross-BorderSettlementInfrastructureForummember

organizationsagreedtoestablishaCSD–real-timegrosssettlementlinkage,whichdirectlylinksthe

settlementsystemsofcentralbanksandCSDs.ThelinkagesamongnationalCSDsandcentralbanks’

real-timegrosssettlementsystemsindifferentregionalmarketsareexpectedtofacilitate

intraregionalportfolioinvestmentsandtheuseoflocalcurrencybondsascollateral,whichotherwisehavebeenlockedinonshoremarkets,byenablingcross-currencydelivery-versus-paymentofcross-bordersecuritiestransactions,aswellaspayment-versus-paymentoflocalcurrenciesintheregion,withoutatimelag.

2ThisCSIFBriefwaswrittenandcompiledbySatoruYamadera,advisortotheEconomicResearchandDevelopmentImpact

DepartmentofADB,andShigehitoInukaiandMatthiasSchmidt,ADBconsultants;withsupportfromJiwoongChoi,ADBfinancial

sectorspecialist;andvaluableinputandexpertisefromABMFandCSIFmembers,andothersubjectmatterexperts,includingHidekiKanda,professoremeritusoftheUniversityofTokyo.TheCSIFsecretariatteambearssoleresponsibilityforthecontentsofthisbrief.

3Forconsistencyinthisbriefseries,ADBhaschosentofollowtheFinancialStabilityBoardinusingthefollowingspelling:“crypto-asset”and“crypto-assets.”

Cross-BorderSettlementInfrastructureForumBriefNo.33

Inasimilarmanner,thelinkofdigitalassetstoneworspecifictechnologiesprovidesanadditionaldimension

tothedefinitionsofdigitalassetsandtheir

characteristics.Newlyemergingdigitalassets,suchasBitcoin,arereferredtoasdigitalassetswithoutclearlydefiningthemordifferentiatingthemfromexisting

e-moneyordematerializedsecurities,whicharealso

representedindigitalform.Itisnecessarytoknowthat

thetechnologybehinddigitalassetsmaycreatedifferencesinhowtorecognizethemlegally.

Forexample,distributedledgertechnology(DLT)andblockchainareoftenusedinterchangeablybutarenot

completelythesame.DLTisageneraltermfor

technologiesandmechanismsformanagingdataina

decentralizedmanner;blockchainisonerepresentativeexampleofDLT,beingatechnologyformanagingdataconsistingofaseriesofblockswhoseorderand

consistencyiscryptographicallyverifiable.4

Cryptographyplaysanimportantroleintheprocessofcreatingblockchain,butdigitalassetsarenotnecessarily“crypto,”dependingonthetechnologyused.

Thismultitudeoftermsandviewpointsmayimpact

policymakers'abilitytounderstandthecharacteristicsofdigitalassets,theirinherentrequirements,andtherisks

ofunderlyingtechnologiesinordertodefineandeffectivelyregulatethem.

DifferentDefinitionsofDigitalAssetsandCrypto-Assets

Nothinghighlightsthecomplexityofdigitalassetsmoreeffectivelythanthefactthatmultipletermsanddefinitionsfordigitalassets(andtheirvariousiterationsandcategories)exist.

Forexample,theuseof"crypto-asset"isthoughttoreferbacktoameetingattheG20Summitin2018inwhichit

wasnotedthatso-calledvirtualcurrency(e.g.,

cryptocurrencyordigitalcurrency)lackedthe

characteristicsofsovereigncurrency.Topreventmoneylaunderingandthefinancingofterrorism,thedirectionforregulatingcrypto-assetswassetoutinthatsummit’sleaders’declaration.5

Whilethetermcrypto-assethas,hence,cometoclearlydistinguishitfromexistingcurrency,anumberof

differentdefinitionshavesinceemerged,asdetailed

below.Often,byusingcrypto-assets,alinkbetweenthedigitalassetandatypeoftechnologyisestablished;

hence,thetechnologybecomespartofthedefinition.

Yet,suchconnectionisnotnecessarybydefaultand,notably,DLTisnotconfinedtojustblockchain

solutions.

GeneralDefinition

Inastraightforwardgeneraldescriptioninafinanceglossary—thatis,adefinitionthatisnotaimed

specificallyatthebondorcapitalmarket,oranyparticularstakeholdersorcommunity—

“adigitalassetisanythingthatisstoreddigitallyandisuniquelyidentifiablethatorganizationscanuseto

realizevalue[…].”6

Thecorepremiseofadigitalassetinthiscaseis,hence,theexistenceofanassetindigitalform.

DefinitionsbyInternationalStandard-SettingBodies

Internationalstandard-settingbodiesforfinancial

marketshaveestablisheddefinitionsfordigitalassets,virtualassets,andcrypto-assets.

TheFinancialStabilityBoard(FSB),inits2022

AssessmentofRiskstoFinancialStabilityfromCrypto-

Assets,linksadigitalassettonewtechnologiesfromtheoutset:

4Iftheprocessoftheverificationissharedbymany(i.e.,distributed),recordeddatawillbeimmutablewithhightransparency,traceability,andresilience.Therefore,blockchainisnormallydesignedtobeadistributedpeer-to-peersystemthatbroadcastsinformationtoasetofparticipantswhoworktovalidateitandkeepitinaledgerofactivitiesasconnectedblocks.

5“Technologicalinnovations,includingthoseunderlyingcrypto-assets,candeliversignificantbenefitstothefinancialsystemandthebroadereconomy.Crypto-assetsdo,however,raiseissueswithrespecttoconsumerandinvestorprotection,marketintegrity,tax

evasion,moneylaundering,andterroristfinancing.Crypto-assetslackthekeyattributesofsovereigncurrencies.”Excerptfromthe

G20FinanceMinistersandCentralBankGovernorsMeeting.2018.CommuniquéItem10fromBuenosAires,21–22July.

https://g20.utoronto.ca/2018/2018-07-22-finance.html

.

6Gartner.DigitalAssets.

/en/finance/glossary/digital-assets

.

4AnIntroductiontoDigitalAssets

“Digitalasset:adigitalinstrumentthatisissuedor

representedthroughtheuseofdistributedledgerorsimilartechnology.Thisdoesnotincludedigital

representationsoffiatcurrencies.”7

Inanearlierpublicationin2018,theFSBreferredtocrypto-assetsasfollows:

“Crypto-asset:atypeofprivateassetthatdependsprimarilyoncryptographyanddistributedledgerorsimilartechnologyaspartoftheirperceivedor

inherentvalue.”8

TheFSB’sfocusoncrypto-assetsasasubsetofdigitalassetsreflectstheincreaseintheinterconnectedness

betweenthecrypto-assetmarketandthetraditional

financialsysteminrecentyears,andthattheseassetscouldsignificantlyimpacttraditionalfinancialtransactions.

Similarly,theBaselCommitteeonBankingSupervision(BCBS),theprimaryglobalstandardsetterforthe

prudentialregulationofbanks,definescrypto-assetsasfollows:

“Cryptoassetsaredefinedasprivatedigitalassetsthatdependoncryptographyanddistributedledger

technologiesorsimilartechnologies.”9

TheBCBSdefinitiongoesfurtherinitsregulatoryguidancebyclassifyingcrypto-assetsintotwogroups.Theallocationofaparticularcrypto-assettoagroupdeterminesthe

capitalrequirementbankshavetomaintainpursuanttotherisk-weightedexposureconceptintheBasel

Framework.Group1crypto-assetsconsistoftokenized

traditionalassetsandcrypto-assetswitheffective

stabilizationmechanisms.Group2crypto-assetsaretheonesthatfailtomeetanyoftheclassificationconditions(e.g.,unbackedcrypto-assets).TheyaredeemedtoposeadditionalandhigherriskscomparedtoGroup1crypto-assets.TheBCBSsetanimplementationdateof

1January2025forthistreatmentbybanks.

TheInternationalOrganizationofSecurities

Commissions,aninternationalbodythatbringstogethertheworld’ssecuritiesregulators,isrecognizedasthe

globalstandard-setterforfinancialmarketregulation.Itprovidesdefinitionsandframeworkstohelpregulate

variousfinancialinstruments,includingdigitalassetsandcrypto-assets.Initspublications,theInternational

OrganizationofSecuritiesCommissionsprovidesacomprehensivedefinitionofdigitalassetsorcrypto-assets,includingthewell-establishedviewthatbothtermsaresynonymous:

“Crypto-asset:Anasset,sometimescalleda

“digitalasset,”thatisissuedand/ortransferred

usingdistributedledgerorblockchaintechnology.Crypto-assetsinclude,butarenotlimitedto,so-called“virtualcurrencies,”“coins,”and“tokens.”Totheextentdigitalassetsrelyoncryptographicprotocols,thesetypesofassetsarecommonly

referredtoas“crypto-assets.””10

TheFinancialActionTaskForce(FATF),the

intergovernmentalpolicymakingbodyactingastheglobalmoneylaunderingandterrorism-financing

watchdog,appliesthefollowingdefinition:

“Virtualassets(cryptoassets)refertoanydigital

representationofvaluethatcanbedigitallytraded,transferred,orusedforpayment.Itdoesnotincludedigitalrepresentationoffiatcurrencies.”11

In2023,theFATFclarifiedthedefinitionfurther

throughRecommendationNo.15(NewTechnologies):

“Avirtualassetisadigitalrepresentationofvaluethatcanbedigitallytraded,ortransferred,andcanbeusedforpaymentorinvestmentpurposes.Virtualassetsdonotincludedigitalrepresentationsoffiatcurrencies,securitiesandotherfinancialassetsthatarealready

coveredelsewhereintheFATFRecommendations.”12

7FSB.2022.FSBAssessmentofRiskstoFinancialStabilityfromCrypto-Assets(Annex2—Glossary).p.25.

/wp-content/uploads/P160222

.pdf.

8FSB.2018.Crypto-AssetMarketsPotentialChannelsforFutureFinancialStabilityImplications(Annex2—Glossary).p.17.

/wp-content/uploads/P101018

.pdf.

9BankofInternationalSettlements.2022.PrudentialTreatmentofCryptoassetExposures.p.5.

/bcbs/publ/d545

.pdf.

10InternationalOrganizationofSecuritiesCommissions.2023.PolicyRecommendationsforCryptoandDigitalAssetMarkets,FinalReport.(AnnexA—GlossaryofRelevantTermsandDefinitionsFR11/2023).p.44./library/pubdocs/pdf/IOSCOPD747.pdf.

11FATF.VirtualAssets.

/en/topics/virtual-assets.html

(accessed28July2024).

12FATF.2023.InternationalStandardsonCombatingMoneyLaunderingandtheFinancingofTerrorismandProliferation.UpdatetotheRecommendationsAdoptedbytheFATFPlenaryinFebruary2012.

/content/dam/fatf-gafi/recommendations/FATF%20Recommendations%202012

.pdf.coredownload.inline.pdf.

Cross-BorderSettlementInfrastructureForumBriefNo.35

InitsinterpretivenotestoFATFRecommendation15

(NewTechnologies),theFATFproposedthateach

economyshouldconsidervirtualassetsas“property,”

“proceeds,”“funds,”“fundsorotherassets,”orother

“correspondingvalue.”Inadditiontovirtualassets,theFATFstatedthatthedefinitionsofthereferencedtermsareoftenverymuchdependentoneachjurisdiction’s

legalandregulatoryframework.

DefinitionsfromNationalLegalandRegulatoryPerspectives

Thedefinitionsofdigitalassetssetbythe

internationalstandard-settingbodiesareintended

toinvolvemultiplemarkets,buttheycannot

encompassthedefinitionsofallmarketsastheysetthemalongwiththeirpolicyintentions,aswesee

above.Assuch,lookingatthedefinitionofdigitalassetsfromeacheconomy’slegalandregulatoryperspectivesisbeneficial.Whilenational

definitionsreflecttherecognitionofdigitalassetsinagivenjurisdictionandhowtheyfitintothe

domesticlegalframework,theInternational

InstitutefortheUnificationofPrivateLaw

(UNIDROIT),anindependentintergovernmentalorganizationformulatinginternationalprivateandcommerciallawpractices,issuedthePrinciplesonDigitalAssetsandPrivateLaw(theUNIDROIT

Principles)inJune2023.13

AccordingtotheUNIDROITPrinciples,

“digitalassetmeansanelectronicrecordwhichis

capableofbeingsubjecttocontrol;”here,“electronicrecordmeansinformationwhichis(i)storedinan

electronicmediumand(ii)capableofbeing

retrieved;”14

TheUNIDROITPrinciplesareintendedtobe

technologyagnostic.Currently,blockchainispopularfortokenization,butitcanbereplacedbynewtechnology

inthefuture.Fromalegalperspective,ensuringlegalcertaintyfortheuseofanytypeoftechnologyis

criticallyimportantbecausethiswillhelpdevelopthenewbusinessofdigitalassetsregardlessofthefuturedevelopmentofnewtechnologies.

ThekeyconceptintheUNIDROITPrinciples’definitionis“control.”Suchcontrollabilityneedstobeexclusive,

thoughhowtoensurethiscontrollabilitymaydifferacrosstechnologies,suchasblockchain-based

distributedledgerdatamanagementoraccount-based

centralizedledgermanagement(seealsoCharacteristicsofDigitalAssets).

Inaddition,theUNIDROITPrinciplesperceivethe

conceptoflinkedassets.Digitalassetscanbelinkedtoothertangibleandintangibleassetsforwhichconcretelegalpracticesarealreadyestablished.Therefore,

businessrelatedtodigitalassetscanbepromotedopenlywithforeseeablelegallimitations,aswellasflexibilityinthecaseoflinkedassets.

ThemembersoftheUNIDROITPrinciplesworking

groupinitiallyintendedtodevelopataxonomyfordigitalassetsbutquicklyrealizedthatthecharacteristicsof

theseassetsdifferedbasedontheintentofand

applicationbystakeholders,andthattherewere

differencesintheuseoftechnology.Consequently,UNIDROITfocusedonthepurelylegalaspectsofdigitalassets.

TheUNIDROITPrinciples’approachisnotunique.In2015,theGovernmentoftheUnitedStates(US)

introducedasimilardefinitionofdigitalassetsbasedontheexistinglegalframework:

“Digitalasset”meansan“electronicrecordinwhichanindividualhasarightorinterest,”butdoesnotincludethe“underlyingassetorliabilityunlesstheassetor

liabilityisitselfanelectronicrecord.”15

13UNIDROITundertooka31-monthofficialreviewofdigitalassetconsiderations,bringingtogetherlegalandinformationtechnologyexpertsinseveralrelatedfieldsfromaroundtheworld.

14UNIDROIT.2023.“SubmissionoftheDraftPrinciplesonDigitalAssetsandPrivateLawtotheGoverningCouncilforConsiderationandFinalAdoption:AdoptionofDraftUNIDROITInstruments(c)PrinciplesonDigitalAssetsandPrivateLaw.”GoverningCouncil102ndSession,Rome.10–12May.

/wp-content/uploads/2023/04/C.D

.-102-6-Principles-on-Digital-Assets-and-Private-Law.pdf.

15TheRevisedUniformFiduciaryAccesstoDigitalAssetsAct,2015wasdevelopedbytheUniformLawCommissiontoprovidelegalguidanceforfiduciariesmanagingdigitalassetsofdeceasedorincapacitatedindividuals.UniformLawCommission.2015.RevisedUniformFiduciaryAccesstoDigitalAssetsAct.

/viewdocument/enactment-kit

-

68?CommunityKey=f7237fc4-74c2-4728-81c6-b39a91ecdf22&tab=librarydocuments.

6AnIntroductiontoDigitalAssets

In2019,theAmericanBarAssociationaddedaclarificationtothesamedefinition,stating:

“Digitalassetsaredistinguishedfromphysicalassetsbecausethedigitalassetitselfdoesnotexistin

physicalform.Forexample,abitcoinisadigitalassetbecauseitisanelectronicrecordthatiscreatedandstoredexclusivelyontheBitcoinblockchain.”16

In2022,USpolicymakersincludedthenewclassofdigitalassetsintoamendmentstotheUniform

CommercialCode(UCC),alegislativeguidanceconceptonwhichfederalandstatelawsmaybe

modeled.TheUCCreferencestheterm“controllable

electronicrecords”(CERs)toaddressthelegalaspectsofdigitalassets,particularlyinsecuredtransactions,andoffersthefollowingdefinition:

“CERsaredefinedasrecordsstoredinanelectronicmediumthatcanbesubjectedtocontrol.This

definitionisintendedtoencompasscryptocurrencies,stablecoins,[nonfungibletokens],andothercrypto-

assets,butitexplicitlyexcludeselectronicmoney,

electronicchattelpaper,electronicdocumentsoftitle,andinvestmentproperty.”17

Initsapproachtothe2022amendmentsanddefinitionofCERs,theUCClargelyadoptsthekeyarguments

promotedintheUNIDROITPrinciples(furtherdetailedinCSIFBriefNo.4)—specifically,thesignificanceof

controlandtechnologicalneutrality.TheUCC

amendmentscreatedanewArticle12governingthe

transferofpropertyrightsinCERsandmodifiedArticle9toclarifytheproceduresforattachmentand

perfectionofsecurityinterestsinCERs.These

amendmentsaimtoprovideauniformframeworkfordealingwithsecurityinterestsincrypto-assetssuchasCERs.

However,theUCCdefinitionhasnotyetbeen

establishedasacommonnotionbyallstakeholdersintheUS.Differentauthoritiessetdifferentdefinitionsfordigitalassets,dependingontheirsupervisoryremitandresponsibilityoverdifferentmarketsandproducts.

Forexample,theUSFinancialIndustryRegulatory

Authority,whichregulatesbroker–dealersoperatingintheUS,statedinaregulatorynoticetothemarket:

“Theterm“digitalasset”referstocryptocurrencies

andothervirtualcoinsandtokens(includingvirtual

coinsandtokensofferedinaninitialcoinoffering[…],andanyotherassetthatconsistsof,orisrepresentedby,recordsinablockchainordistributedledger

(includinganysecurities,commodities,software,

contracts,accounts,rights,intangibleproperty,

personalproperty,realestateorotherassetsthatare“tokenized,”“virtualized,”orotherwiserepresentedbyrecordsinablockchainordistributedledger).”18

ThisislargelyinlinewiththeUCCdefinition,althoughitstillreferencestechnology.However,theSecuritiesandExchangeCommissiontendstofocusmoreonactivitiesrelatedtotheoffer,sale,andtradingofsecurities;thus,digitalassetsinvolvingtheseactivitiesarerecognizedasdigitalassetsecurities.19Similarly,theCommodity

FuturesTradingCommissionrecognizesthemas

commodities,theComptrolleroftheCurrency

recognizesthemascashequivalentwhereapplicable,theBureauoftheTreasuryrecognizesthemas

monetaryinterpretation,andtheInternalRevenueService(UStaxoffice)recognizesthemasproperty.

Thesedifferencesmaystemfromthecomplexnatureofdigitalassets,whichcanbeusedasameansofpayment,storeofvalue,orinvestment,aswellasrepresentationsofvalueandinformation.Untilweseeaconcretecourtdecision,itislikelythatthisuncertaintywillremainin

theUSmarket.

IntheUnitedKingdom(UK),theLawCommission

concluded—initsconsultationfordraftlegislationoftheProperty(DigitalAssets)Act,2024—thatthecommonlawsysteminEnglandandWaleswaswellplacedto

provideacoherentandgloballyrelevantregimefor

existingandnewtypesofdigitalassets.Thedraftactistointroduceanew,thirdcategoryofpropertynamed“thingthatisdigitalinnature,”inadditionto“real

property,"whichreferstorealestate,and"personal

16AmericanBarAssociation,DerivativesandFuturesLawCommittee,InnovativeDigitalProductsandProcessesSubcommittee,JurisdictionWorkingGroup.2019.DigitalandDigitizedAssets:FederalandStateJurisdictionalIssues.

/sites/default/files/aba_digital_and_digitized_assets_white_paper.pdf

.

17UniformLawCommissionandtheAmericanLawInstitute.2022.UniformCommercialCodeAmendmentstoArticles9–12.

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