Oregon has passed a bill recognizing Bitcoin and other cryptocurrencies as collateral, expanding the use of digital assets.

Table of Contents* 1. Oregon State to Recognize Cryptocurrency as Collateral

• 2. Using cryptocurrency as collateral | New developments in the U.S. financial markets

• 2.1. Officially collateralizing digital assets such as Bitcoin
• 2.2. Promoting the development of the digital commerce environment
• 2.3. Expectations for institutional investors entering the virtual coin market are rising

• 3. Oregon is deliberating a new bill to ease cryptocurrency regulations.

• 3.1. Promoting the protection of rights for virtual coin users HB2071
• 3.2. Prohibition of taxation and fees on payments in virtual coin
• 3.3. Looking towards further relaxation of cryptocurrency regulations

Oregon State Recognizes Cryptocurrency as Collateral

Oregon Governor Tina Kotek signed the state bill "SB167" on May 8, 2025, which recognizes cryptocurrency as Collateral, and the law has been established.

This new law amends the Uniform Commercial Code (UCC) of Oregon, officially recognizing virtual currencies such as Bitcoin (BTC) as collateral in commercial transactions.

SB167 was proposed as a "bill concerning the UCC" and aims to legally incorporate new payment methods and the use of virtual currencies in commercial transactions.

With the passage of this bill, Oregon has become the third state, following Arizona and New Hampshire, to clarify the legal status of virtual currency.

Using Cryptocurrency as Collateral | New Developments in the US Financial Market

Officially collateralizing digital assets such as Bitcoin.

The recently established SB167 adds a new Chapter 12 to the Uniform Commercial Code (UCC), creating a legal framework for "manageable electronic records" including virtual currencies (crypto assets), tokenized records, and electronic money.

Additionally, the UCC Article 9 has been amended to clearly allow cryptocurrencies such as Bitcoin to be used as Collateral. This enables the utilization of cryptocurrencies as Collateral for home loans and other purposes, paving the way for the incorporation of cryptocurrencies into traditional financial transactions.

Promoting the development of a digital trading environment

Furthermore, SB167 recognizes the legality of "hybrid transactions" that involve electronic records and electronic signatures, as well as the sale of goods and services as a set, aiming to establish a business transaction environment that is compatible with the digital age.

In conjunction with the enforcement of the bill, transitional measures have been established to maintain the legal validity of existing transactions. Additionally, a one-year grace period has been granted for the collateral rights that have already been established.

Expectations rise for institutional investors to enter the cryptocurrency market.

Until now, the rights related to virtual currency have been unclear, which created legal risks when using it as collateral.

With the enactment of SB167, the rights and priority of collateral related to digital assets have been clarified, creating an environment where companies and financial institutions can confidently utilize virtual currency for transactions and lending.

The prominent cryptocurrency analyst Crypto Rover highly praised on X (Twitter) that it is a crucial milestone in the adoption of cryptocurrencies. It is also welcomed by market participants as a significant step in connecting blockchain technology with traditional financial systems.

🇺🇸 OREGON UPDATE: SB 167 SIGNED INTO LAW, UPDATING THE UNIFORM COMMERCIAL CODE TO CLARIFY DIGITAL ASSETS AS Collateral.

BIG MILESTONE FOR ADOPTION. pic.twitter.com/kc1w3CY2PA

— Crypto Rover (@rovercrc) May 8, 2025

Latest information from Oregon: The SB167 bill has been signed and enacted, amending the Uniform Commercial Code (UCC) to clarify that digital assets can be used as Collateral.

This is a significant advance for the spread of virtual currency.

Oregon State is deliberating a new bill to ease cryptocurrency regulations

Promoting the protection of rights for virtual coin users with HB2071

In Oregon, in addition to SB167, legislation related to virtual currency is being advanced, one of which is the currently under discussion "HB2071".

HB2071 is a bill that protects the rights of citizens utilizing blockchain technology and digital assets such as virtual currencies.

This bill prohibits state governments and local authorities from unjustly restricting the use of virtual currencies such as Bitcoin by individuals.

Prohibition of taxation and fees on payments in virtual coin

Specifically, it includes provisions that guarantee the right to accept virtual currency as a means of payment for legal goods and services, as well as the right to exchange value between individuals through a blockchain network.

Furthermore, the bill prohibits public institutions from imposing additional fees or taxes on payments made in virtual currency.

In addition, measures have been proposed to exempt certain blockchain-related activities from the application of state remittance regulations.

HB2071 is currently under consideration by the Oregon House of Representatives committee and has not yet been passed.

Looking ahead to further easing of cryptocurrency regulations

Currently, there are no proposals in the state of Oregon to adopt Bitcoin as a state reserve asset, and in the development of the legal framework for cryptocurrencies such as Bitcoin, approaches such as clarification of commercial transactions and assurance of usage rights are mainly taken through SB167 and HB2071.

In the future, depending on the deliberation status of HB2071 and trends in other states, it is expected that further cryptocurrency-related measures, such as Bitcoin, will be considered in Oregon.

The efforts of the state towards promoting the use of virtual currencies, including Bitcoin, and easing regulations are attracting significant attention from investors, financial institutions, and other market participants.

Latest cryptocurrency news here

Source: Bitcoin Magazine

Writing and Translation: BITTIMES Editorial Department

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