The New York City Bar Association has proposed reforms to maintain New York’s position as a leading center in the crypto industry and Web3. This proposal comes at a time when cryptocurrency adoption is increasing, exemplified by the recent approval of Bitcoin spot ETFs in the United States and the expectation that the SEC will authorize exchange-traded funds to hold Ethereum.
New York needs a UCC update
The college has highlighted the need to update the New York Uniform Commercial Code (UCC), which has not seen notable changes since 2014. That is why the college’s experts propose updates to stay at the forefront of financial and technological developments.
“We are facing a unique opportunity to reaffirm New York’s leadership in the commercial and financial field. Our proposals seek not only to update regulations, but also to encourage innovation and prevent the flight of talent and companies to other more favorable jurisdictions,”
Mentioned a spokesperson for the Bar Association.
For example, a proposal for laws that reduce the transaction costs of cryptocurrencies, while guaranteeing their security. This could benefit quite a few companies, from startups to giants like Coinbase and Binance, both of which have had legal problems from the SEC.
“Competition” and adoption
The situation in the United States contrasts with other regions such as the European Union, the United Kingdom, and the United Arab Emirates, which are taking proactive measures to establish themselves as leaders in the digital asset sector.
Another notable development is Visa’s recent collaboration with Transak, a Web3 payments infrastructure provider, which allows Visa card users to convert crypto assets into fiat currencies in real time. Another indication of a growing trend towards the integration of cryptocurrencies into conventional payment systems, a movement that New York cannot afford to ignore.
And, as more states in the US adopt the UCC Model Amendments, New York faces the possibility of being left behind in the race to attract and retain talent and companies in the digital assets sector. So the Bar’s proposed reforms could be the start of ensuring that New York not only stays relevant, but also leads the way in the era of the digital economy.
Featured image: Juan José Leiva – generated with AI