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Kentucky Senate action on uniform commercial code includes talk on digital money

Western Kentucky Senator Whitney Westerfield Explains the UCC bill 02-22-24
Stu Johnson
Western Kentucky Senator Whitney Westerfield Explains the UCC bill 02-22-24

The need to update the uniform commercial code in Kentucky created a philosophical debate in the State Senate about digital currency.

In detailing the UCC revision on the floor, Fruit Hill GOP Senator Whitney Westerfield said it allows businesses to interact with one another. That includes how to interact with digital assets. Westerfield said just because the bill mentions cryptocurrency, it doesn’t require its use or endorse such.

“We can’t create a currency..not for the national government. And this bill isn’t trying to do that. It’s got nothing to do with government. It has everything to do with private businesses,” said Westerfield.

Pike County GOP Senator Phillip Wheeler voted no. He said it allows, for instance, banks to collateralize on digital currency and that, Wheeler added isn’t, quote, “good for a healthy financial market.”

Lawrenceburg Senator Adrienne Southworth said the bill blesses risk.

“The concept is should we protect people who are engaging in these extremely risky types of situations by just laying down a law and saying we’re gonna say it’s ok. Even though somebody else clearly has their fingers in your account,” said Southworth.

Westerfield meanwhile said the uniform commercial code only pertains to businesses. He said the bill doesn’t endorse the use of cryptocurrency nor does it prohibit it. Westerfield added it sets the rules on how to use it, collateralize it, and secure it. The bill passed the Senate 29 to eight and moved to the House.

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Stu has been reporting for WEKU for more than 35 years. His primary beat is Lexington/Fayette government.
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