13-62-101. Definitions.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/1/2024

As used in this chapter:

(1)"Agent" means a person who is authorized to act on behalf of an owner with respect to a digital asset.

(2)"Control" means:

(a)an owner or an agent has the exclusive legal authority to conduct a transaction relating to the digital asset, including by means of a private key or the use of a multi-signature arrangement the owner or agent authorizes; or

(b)a secured party has created a smart contract that gives the secured party exclusive legal authority to conduct a transaction relating to a digital security.

(a)"Digital asset" means a representation of economic, proprietary, or access rights that is stored in a computer readable format.

(b)"Digital asset" includes:

(i)a digital user asset; or

(ii)a digital security.

(4)"Digital security" means a digital asset that constitutes a security, as that term is defined in Section 70A-8-101 .

(a)"Digital user asset" means a digital asset that is used or bought primarily for consumptive, personal, or household purposes.

(b)"Digital user asset" includes an open blockchain token.

(c)"Digital user asset" does not include a digital security.

(6)"Multi-signature arrangement" means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the digital asset, in which two or more private keys are required to conduct a transaction.

(7)"Private key" means a unique element of cryptographic data that is:

(a)held by a person;

(b)paired with a public key; and

(c)used to digitally sign a transaction.

(8)"Public key" means a unique element of cryptographic data that:

(a)is publicly available;

(b)is paired with a private key that is held by the owner of the public key; and

(c)allows viewing, but not digitally signing, electronic transactions.

(9)"Smart contract" means a transaction that is comprised of code, script, or programming language that executes the terms of an agreement, and which may include taking custody of and transferring a digital asset, or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.

Amended by Chapter 324 , 2024 General Session