Tennessee Senate Bill SB0479

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/23
• Engrossed: 3/21/24
• Enrolled: 4/15/24
• Passed: 4/29/24
• Chaptered: 5/7/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, relative to the uniform commercial code.

Impact

The impact of SB 479 is significant as it addresses emerging financial technologies, particularly the absence of federal or state definitions concerning digital currencies in relation to traditional banking definitions. By explicitly excluding central bank digital currencies from the definition of deposit accounts, the legislation could lay the groundwork for future regulatory considerations as this financial technology evolves. Overall, these amendments could enhance legal clarity for financial institutions operating under Tennessee law.

Summary

Senate Bill 479, known as the Uniform Commercial Code Amendment, seeks to revise the definition of 'deposit account' within Tennessee's banking regulations. The bill aims to provide clarity by specifying what constitutes a deposit account, detailing what is excluded from this definition. These exclusions include investment property, accounts evidenced by an instrument, and notably, United States central bank digital currencies. This specificity is anticipated to align Tennessee's laws more closely with current banking practices and technological advancements in the financial sector.

Sentiment

The sentiment surrounding SB 479 is largely supportive among banking and financial institutions, as it aims to modernize banking definitions to reflect contemporary practices and innovations in finance. Legislators have expressed optimism that these updates will help streamline operations and provide clearer guidance for compliance. However, there is cautious scrutiny from consumer advocacy groups who are concerned about the regulatory implications of excluding digital currencies, particularly regarding consumer protections.

Contention

Concerns have been raised about the implications of specifically excluding a central bank digital currency from the definition of a deposit account. Critics argue that such exclusions could hinder future integrations of digital currencies into the existing banking framework and may leave consumers unprotected if not carefully regulated. This contention underscores the balance legislators must find between fostering innovation in finance while ensuring adequate safeguards for consumers.