The NYC Bar Association is pushing for crypto law reforms to stop strict exits
The New York City Bar Association has proposed a new reform related to emerging technologies such as digital assets to encourage crypto companies to set up their headquarters in New York and maintain the city's preeminence as a major business jurisdiction.
New York's Emerging Technology Amendments are aimed at promoting technological and business developments that reduce transaction costs and enhance the efficiency and security of financial transactions governed by New York's Uniform Commercial Code (UCC), according to the association's New York State Legislative Agenda, published in January. 29.
The association notes that these advantages are significant factors considered by market participants who choose New York as a business location or jurisdiction to resolve legal disputes.
The amendments propose to adapt New York's UCCC to “recent and likely future developments in technology.” The UCC has not been updated since 2014, and the report notes that there have been many important technological advances since then.
The report highlights New York's risk of losing digital property market participants, as 11 states have adopted model UCC amendments proposed by the Uniform Law Commission (ULC), while another 15 states (and the District of Columbia) have introduced bills for amendments, with more states expected to follow suit. The report says:
“New York is worried that market participants will choose one of these states to conduct new technologies and electronic transactions by rapidly changing their business laws, including those of digital assets or the laws of other countries such as the UK.”
New York has the world's largest number of crypto companies, standing at 843 companies by the end of 2023. New York was ranked as the third-best crypto hub in Recap's annual list of top crypto hub cities published in 2023, with more than 1,400 employees in crypto-related fields.
However, the NYC Bar Association also emphasizes the importance of adopting the new reforms to prevent crypto companies from migrating to states with more crypto-friendly regulations.
The reforms will also help ensure New York's leadership in business and financial growth and development and stem the migration of digital commerce to other jurisdictions, which clearly promote and encourage technological and business advancements.
A January 22 survey by CoinLedger found that Florida was named the “best state” while New York was named the worst state for crypto taxes.
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