House Bill 195 Heads to Governor After Overwhelming Bipartisan Approval

06/10/26

Ohio is one step closer to modernizing its commercial laws for the digital age.

House Bill 195, legislation updating Ohio's Uniform Commercial Code (UCC) to address digital assets and emerging technologies, has now passed both the Ohio House and Ohio Senate with strong bipartisan support. The bill previously cleared the House by a vote of 83-7 and recently received final approval from the Senate, sending the measure to Governor Mike DeWine for his signature.

Governor DeWine is expected to sign the legislation, and the bill will become effective 90 days after it is signed and enrolled.

The Ohio Bankers League strongly supported House Bill 195 throughout the legislative process and submitted testimony before the Senate Judiciary Committee highlighting the bill's importance to Ohio's banking industry and broader business community.

House Bill 195 is based on nationally developed amendments to the Uniform Commercial Code that have been advanced by the Uniform Law Commission and adopted by more than 30 states. The legislation creates a new UCC Article 12 governing certain digital assets known as "controllable electronic records" (CERs) and establishes a legal framework for commercial transactions involving those assets.

While digital assets often generate headlines because of cryptocurrencies and blockchain technology, the legislation is fundamentally about commercial law modernization. The bill updates Ohio's legal framework to ensure that existing principles governing ownership, transfers, secured transactions, and collateral continue to function effectively as commerce increasingly incorporates electronic records and digital assets.

Of particular significance to financial institutions, HB 195 provides greater clarity regarding the perfection and priority of security interests in digital assets. Under current law, uncertainty exists regarding how lenders can effectively establish and protect their interests in certain forms of digital collateral. The bill addresses that challenge by allowing lenders to perfect security interests through "control," a concept that functions similarly to possession of traditional tangible collateral.

This increased certainty benefits both lenders and borrowers. Financial institutions gain a clearer legal framework for evaluating digital assets as collateral, while businesses gain greater access to financing opportunities involving emerging forms of value. The legislation also reduces legal uncertainty and transaction costs by establishing predictable rules that can be applied consistently across jurisdictions.

Uniformity is another important benefit. As more states adopt these UCC amendments, maintaining consistency among jurisdictions becomes increasingly important for commercial transactions that routinely cross state lines. By joining the growing number of states that have adopted these updates, Ohio helps ensure that its businesses, lenders, attorneys, and courts operate within a modern and nationally consistent commercial law framework.

Importantly, HB 195 does not abandon traditional commercial law principles. Rather, it adapts longstanding concepts and protections to new technologies while preserving the predictability and stability that businesses and financial institutions depend upon.

The Ohio Bankers League appreciates the leadership of House Minority Leader Dani Isaacsohn (D-Cincinnati) and Representative Adam Mathews (R-Lebanon), as well as the strong bipartisan support the legislation received throughout the General Assembly. Once signed by Governor DeWine, HB 195 will position Ohio to remain competitive in an evolving economy while ensuring its commercial laws continue to support innovation, lending, and economic growth.