About the Course
Introduction
This CLE course will discuss stablecoins in the context of commercial transactions, with a particular focus on UCC rules governing the settlement of payments, adverse claims, discharge of underlying obligations, and security entitlement. The panel discussion will include the current regulatory framework around stablecoins and blockchain and how it impacts financial transactions with stablecoins.
Description
Cryptocurrencies like Bitcoin offer an accessible and borderless way to make payments, but price volatility and unpredictable transaction costs render them impractical for day-to-day use. Stablecoins are digital assets pegged to the value of another asset, often the U.S. dollar, thus increasing their acceptance as a medium of exchange in commercial transactions. Still, stablecoins present legal and regulatory issues.
Stablecoins differ from traditional financial infrastructures, in which transactions run through a licensed intermediary. They straddle the divide between currencies on the one hand and investment securities and commodities on the other. Counsel should understand the regulatory framework around stablecoins, including how they might be categorized by securities regulators and the current rules and guidance regarding custody and engagement by banks in blockchain networks.
Counsel must fully grasp fundamental concepts regarding settlement finality, rules for adverse claims, discharge of the underlying obligation, and the concept of a security entitlement. UCC Article 8 (securities) and UCC Articles 3, 4, and 4A (payment, adverse claims) offer a framework for understanding the rights and obligations of the parties to a transaction involving stablecoin. In addition, the 2022 UCC Amendments included the creation of Article 12 and the category of a controllable electronic record (CER). Our faculty will examine these UCC articles and recent amendments to provide counsel with a clear understanding of the UCC framework for stablecoin treatment. Time will be spent analyzing the requirements of the GENIUS Act and the Bank Secrecy Act (BSA), as well as anti-money laundering and countering the financing of terrorism (CFT) requirements that practitioners need to consider when advising clients on engaging in commercial transactions involving stablecoins.
Listen as our authoritative panel discusses the transactional and regulatory issues related to stablecoins and best practices for counsel when transacting with these digital currencies.
Presented By
Mr. Silvia represents financial institutions in a variety of corporate and regulatory matters, including mergers, acquisitions, strategic transactions, structured finance, corporate governance, payments, anti-money laundering and OFAC/sanctions compliance, and private equity and venture capital investments – in short, everything but litigation. His clients include international, national, regional, community, retail and commercial banks, fintech companies, credit unions and corporations. Mr. Silvia is a member of the Duane Morris Digital Assets and Blockchain Group, a multidisciplinary group of Duane Morris partners providing a full suite of services to clients in the cryptocurrency, digital asset, and blockchain industries, both domestically and internationally. He also hosts the Duane Morris Money and Banking Law Podcast, where he educates clients and friends on critical developments in the law and regulation of money and banking, as well as some fundamental concepts and structure of the banking ecosystem itself.
Mr. Wish represents financial institutions, payments companies and fintech firms on regulatory and transactional matters involving payment systems and other payments and fintech businesses, including those involving distributed ledger technology and other innovative technologies. He advises clients on new product development and related contractual arrangements, as well as bank regulatory, commercial law, money transmission, anti-money laundering, compliance and other matters. He also advises on capital markets transactions and mergers and acquisitions for financial services entities. Mr. Wish serves as co-chair of the Payments Subcommittee of the American Bar Association’s Uniform Commercial Code Committee.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, October 20, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. How a stablecoin is created
II. Applying UCC concepts to stablecoin payments
A. 2022 Amendments: including Article 9, new Article 12 and CERs
B. UCC Articles 3, 4, and 4A: settlement finality, adverse claims, discharge of the obligation
C. Article 8: investment securities
III. Bank regulatory concerns: GENIUS Act, BSA, AML and CFT
IV. Securities regulatory concerns
V. Central Bank digital currencies
The panel will review these and other key issues:
- How does a stablecoin vary from other cryptocurrencies, and how does it retain a stable value?
- What are some issues to consider when making payments on the blockchain?
- How can a bank take possession of custody as security for a loan?
- When will a stablecoin be regarded by regulators as a security? A commodity?
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