The New York City Bar Association has introduced a proposal aimed at fostering the growth of emerging technologies, particularly digital assets, within the state.
The objective is to attract cryptocurrency companies to establish their headquarters in New York and thereby safeguard the city’s prominent status as a leading commercial jurisdiction.
This initiative, known as the New York Emerging Technologies Amendments, is designed to support technological and commercial advancements that reduce transaction costs while enhancing the efficiency and security of financial transactions governed by the New York Uniform Commercial Code (UCC).
The association’s New York State Legislative Agenda, released on January 29, elaborates on this proposal.
The New York City Bar Association emphasizes the importance of these advantages, as they play a pivotal role in the decision-making process for market participants when selecting New York as their business location or jurisdiction for resolving legal disputes.
To achieve this, the proposed amendments seek to modernize New York’s UCC to accommodate recent and potential future developments in technology.
The UCC has remained unchanged since 2014, and significant technological progress has occurred since then, as outlined in the report.
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The report underscores the risk of New York losing digital asset market participants to other states. Currently, 11 states have already enacted model UCC amendments proposed by the Uniform Law Commission (ULC), while an additional 15 states, along with the District of Columbia, have introduced bills based on these amendments. More states are expected to follow suit.
The report raises concern that market participants may prefer these alternative states or even countries like England, which are swiftly adapting their commercial laws to accommodate emerging technologies and electronic transactions.
Although New York boasts the highest number of cryptocurrency companies globally, with 843 firms at the end of 2023, it ranked third on Recap’s 2023 list of top crypto hub cities.
To prevent cryptocurrency firms from relocating to more crypto-friendly jurisdictions, the NYC Bar Association stresses the importance of embracing these new amendments, emphasizing that they will sustain New York’s leadership in commercial and financial progress while discouraging the migration of digital commerce to other, more technology-friendly regions.
It is noteworthy that New York has been identified as the worst state for crypto taxes, according to a January 22 study by CoinLedger, while Florida has been recognized as the “best state” in this regard.
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