The New York City Bar Association has put forward a proposal for an amendment focusing on emerging technologies, including digital assets. This move aims to attract cryptocurrency firms to establish their headquarters in New York, reinforcing the city’s status as a top commercial hub.
Outlined in the New York State Legislative Agenda published on January 29, the New York Emerging Technologies Amendments are designed to foster technological and commercial progress. They aim to reduce transaction costs and improve the efficiency and security of financial transactions under the New York Uniform Commercial Code (UCC).
The Bar Association emphasizes that the proposed benefits of these amendments are key considerations for market participants when deciding to set up business in New York or choose it as the jurisdiction for legal dispute resolution.
The amendment suggests updating the UCC, which has not been revised since 2014, to align with recent and potential technological developments. The report acknowledges significant technological advancements since the last update.
The report warns that New York could lose its edge in the digital asset market. Eleven states have already adopted the Model UCC Amendments from the Uniform Law Commission (ULC), and fifteen more states, including the District of Columbia, are considering similar bills. This situation poses a risk that market participants might prefer these states, or even other countries like England, for digital asset transactions due to their more accommodating commercial laws.
Despite New York housing the largest number of crypto companies worldwide, with 843 firms by the end of 2023, and being ranked third in Recap’s 2023 list of top crypto hub cities, the Bar Association stresses the urgency of adopting these amendments. This is to prevent the migration of crypto firms to more crypto-friendly jurisdictions.
The proposed amendments are seen as crucial for maintaining New York’s leadership in commercial and financial innovation and growth. They are also viewed as a deterrent against the relocation of digital commerce to other regions that more actively support technological and commercial advancements.
Despite these efforts, New York has been identified as the least favorable state for crypto taxes, in contrast to Florida, which was named the best state in a study by CoinLedger published on January 22.
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