A new Ohio law requires retailers and other small businesses to file paperwork with the state if they borrow against or lend digital assets—and most owners don't know it yet.
Most Ohio retail owners have never heard of controllable electronic records. But if your business borrows money using cryptocurrency or NFTs as collateral, or if you accept them as payment and pledge them to a lender, a new state law just changed how you do business.
In March 2024, Ohio passed HB195, which revised the state's Uniform Commercial Code. Buried in that bill is a provision that creates mandatory filing requirements for digital-asset collateral—and it's already law, even though many business owners and lenders don't yet know it exists.
HB195 enacted UCC Article 12 (codified in Ohio Revised Code Chapter 1314) and amended Article 9 (Chapter 1309). The practical effect: if you use a controllable electronic record—cryptocurrency, an NFT, or similar digital asset—as collateral for a loan, you must now file a UCC financing statement with the Ohio Secretary of State, just as you would for physical inventory or equipment.
This is a new requirement. Before HB195, there was no clear legal framework in Ohio for securing loans with digital assets. The law fills that gap by requiring lenders and borrowers to create a public record of the security interest, protecting both parties and establishing priority if multiple creditors have claims against the same digital asset.
If your retail business:
...you now fall under this requirement. The filing must happen with the Ohio Secretary of State and follows the same UCC financing-statement process used for traditional collateral.
The law's effective date has not yet been announced by the state. However, the bill defines a "transitional adjustment date" as July 1, 2025, or one year after the effective date—whichever is later. This date matters because it sets a window for compliance and may affect how existing agreements are treated.
The specific language governing digital-asset filings is found in Section 1309.509 of the Ohio Revised Code (page 77 of the bill text).
If you use or plan to use digital assets in any lending arrangement, talk to your accountant or attorney about whether this applies to your business. If it does, you'll need to understand the filing process and timeline before you enter into any new collateral agreements. Failing to file could mean your lender's claim isn't properly recorded, creating legal and financial risk for both parties.
The Ohio Retailers Association and the Secretary of State's office are expected to release guidance on the filing process as the effective date approaches.
For a plain-language summary of how HB195 affects your specific retail operation, contact your state trade association or local small-business development center.