NYC Bar Association Advocates for Crypto Law Reforms to Retain Firms

The New York City Bar Association is proposing a new amendment that aims to encourage cryptocurrency companies to establish their headquarters in New York. The amendment, known as the New York Emerging Technologies Amendments, is designed to promote technological and commercial advancements that can reduce transaction costs and enhance the efficiency and security of financial transactions governed by the New York Uniform Commercial Code (UCC). The Bar Association believes that these advantages are crucial factors that attract businesses to New York and persuade them to choose the city as their preferred location for legal disputes.

The proposed amendment seeks to update the UCC to accommodate recent and potential future developments in technology. The UCC has not been updated since 2014, and the Bar Association argues that there have been significant technological advancements in the field since then. This update is seen as crucial for New York to maintain its position as a leading commercial jurisdiction and prevent digital asset market participants from choosing other states or even other countries with more accommodating commercial laws for their transactions.

Several states have already adopted the Model UCC Amendments proposed by the Uniform Law Commission (ULC), and others have introduced bills based on these amendments. New York risks losing market participants in the digital asset space if it does not keep up with these developments. The report also notes that England is rapidly reforming its commercial laws to accommodate emerging technologies and electronic transactions, making it a potential alternative jurisdiction for crypto firms.

Despite New York’s current status as the home to the largest number of crypto companies worldwide, it faces the risk of losing these businesses to jurisdictions with more crypto-friendly regulations if the proposed amendments are not adopted. The Bar Association stresses the importance of accepting these amendments to maintain New York’s leadership in commercial and financial progress and growth. The Bar Association argues that by embracing these changes, New York can disincentivize the migration of digital commerce to other jurisdictions that are more supportive of technological and commercial advancements.

It is worth noting that New York has been named the worst state for crypto taxes, while Florida has been identified as the best state, according to a recent study. This further emphasizes the need for New York to adopt regulatory changes that are more favorable to the cryptocurrency industry in order to remain competitive and attractive to crypto companies.

The New York City Bar Association is proposing an amendment to the New York Uniform Commercial Code to accommodate the rapid technological advancements in the digital asset space. This amendment aims to attract and retain crypto firms in New York, prevent their migration to other jurisdictions with more favorable regulations, and secure the city’s position as a leading commercial jurisdiction. Failure to adopt these changes could result in New York losing its status as a crypto hub and facing increased competition from other states and countries.