# kaal:claim:3411110-023

**Claim.** Digital securities are not recognized under any state's current commercial law, which matters because that recognition governs margining and the pledging of securities as collateral.

**Type.** failure  **Support.** asserted

**Holds when.**

- state commercial law as codified in the UCC

**Source quote.**

> The lack of recognition of "digital" securities under any state's current commercial law,51 which is relevant for margin / pledging securities as collateral

**From.** Wulf A. Kaal, Samuel Evans, *Blockchain-Based Securities Offerings* (2019), V. Overcoming Regulatory Uncertainty, page 21

**Cite as.** Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

**Verify.** sha256 of source PDF `c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Evans%20-%202019%20-%20Blockchain-Based%20Securities%20Offerings.pdf

**Failure mode.** commercial law non-recognition of digital securities  (family: regulatory-lag)

**Topics.** securities-law

**Keywords.** state-law, ucc, collateral, margin, digital-securities

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