Utah Code § 13-62-101

Current through the 2024 Fourth Special Session

Section 13-62-101 - Definitions

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.

(3)

(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.

(5)

(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.

Utah Code § 13-62-101

Amended by Chapter 324, 2024 General Session ,§ 1, eff. 5/1/2024.

Added by Chapter 448, 2022 General Session ,§ 1, eff. 5/4/2022.