NY: AFC Letter in Support of Assembly Bill 3307A

May 14, 2025

Hon. Charles Lavine
Chair
Standing Committee on Judiciary
New York State Assembly
Legislative Office Building, Room 832
Albany, NY 12248

Re:   American Fintech Council Support of Assembly Bill 3307A

Dear Chair Lavine and members of the Standing Committee on Judiciary:

On behalf of The American Fintech Council (AFC),  we are writing to express our support Assembly Bill 3307A (A.3307A or New York Emerging Technologies UCC Amendments), amending the Uniform Commercial Code (UCC) to provide for emerging technologies, and respectfully request that Standing Committee on Judiciary take up this issue and swiftly pass the legislation.

AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks who power them. Our mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies. Our members are lowering the cost of financial transactions, allowing them to help meet demand for high-quality, affordable products.

New York’s commercial and financial ecosystem has unique respect within the global financial system. Much of this stems from its strong legal underpinnings and specific framework for freedom of contract as well as strong protections for the negotiability of commercial instruments. These efforts have long made New York the preferred U.S. jurisdiction for paper-based commercial and financial transactions. Unfortunately, the current statutory environment leaves New York poorly positioned to enable and foster the growth of innovative, digital-first transactions, including those involving digital assets. To ensure that New York remains the preferred U.S. jurisdiction for the digital financial services ecosystem, including in areas such as digital assets, and to preserve New York’s preeminence as a leading commercial jurisdiction to govern and adjudicate commercial contracts, AFC believes that the legislature should pass the NY Emerging Technologies UCC Amendments. Doing so will modernize the New York UCC and adapt it to recent and potential future developments in technology and related new methods of doing business.

In July 2022, the Uniform Law Commission (ULC) and the American Law Institute (ALI) promulgated the Emerging Technologies amendments (Model UCC Amendments) to the Uniform Commercial Code (UCC) after a three-year open process involving approximately 350 observers, including a number of observers from New York.  The New York Emerging Technologies UCC Amendments are a tailored version of the Model UCC Amendments designed specifically for the New York UCC, which differs in some important respects from the current uniform text of the UCC. They are otherwise consistent with the Model UCC Amendments in the interest of uniformity with the laws of other states. AFC recognizes that passage of A.3307A will result in important benefits for industry participants, consumers, and New York State.

AFC has consistently advocated for pragmatic policies that encourage innovation and effectively serve consumers. Enacting the New York Emerging Technologies UCC Amendments will promote and encourage technological and commercial innovations that decrease transactional costs and enhance the efficiency, certainty and security of commercial and financial transactions governed by the New York UCC. Responsible innovators—who constitute AFC’s membership—can then pass these benefits onto their consumers through access to affordable credit, payments services, and developing additional innovative products.

Further, from a business perspective, passing A.3307A signals that New York is taking the necessary steps to ensure that innovative companies can operate effectively in the market. Passing the New York Emerging Technologies UCC Amendments will help ensure New York’s leadership in commercial and financial progress and growth and will disincentivize migration of digital commerce to other jurisdictions which more clearly promote and encourage technological and commercial advances. It is important to note that the New York UCC has not been updated since 2014, and there have been many important advancements in technology since that time. New York is now in a position where it risks falling behind other states in their engagement with prudent statutes that encourage innovation. Almost two dozen states and the District of Columbia have already enacted the Model UCC Amendments, and more states have introduced bills, including New York, covering the Model UCC Amendments.  In the coming state legislative sessions we expect more states to introduce bills and adopt the Model UCC Amendments. Ensuring that market participants view New York State as an innovation-forward state is dramatically important for driving additional business to New York. Specifically, this sentiment, and the provisions of A.3307A are major factors of consideration specifically when market participants engage in issues related to “choice of law” and whether businesses will decide to locate to New York.

AFC remains a steadfast proponent for responsible innovation and pragmatic policymaking, and we believe that passing A.3307A will help New York and its citizens thrive in the increasingly digitizing financial system. We appreciate the opportunity to convey our support for A.3307A and appreciate your consideration in our request to pass this bill expeditiously.

Sincerely,

Ashley B. Urisman
Director of State Government Affairs
American Fintech Council

Cc:    

Honorable Andrea Stewart-Cousins, Majority Leader and Temporary President, New York State Senate
Honorable Brad Holyman-Sigal, Chair of the Committee on Judiciary, New York State Senate
Honorable Alex Bores, Assemblymember, New York State Assembly

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[1]AFC’s membership spans technology platforms, non-bank lenders, banks, payments providers, loan servicers, credit bureaus, and personal financial management companies.
[2] A.3307A and its New York Senate companion bill S.1840A are commonly referred to as the New York Emerging Technologies Uniform Commercial Code (UCC) Amendments.
[3]See, Uniform Law Commission, “UCC, 2022 Amendments to”available at https://www.uniformlaws.org/viewdocument/archive-committee-55?CommunityKey=1457c422-ddb7-40b0-8c76-39a1991651ac&tab=librarydocuments.
[4] For full list of introduced and enacted legislation, see Uniform Law Commission, “Legislative Bill Tracking”, available at https://www.uniformlaws.org/committees/community-home?communitykey=1457c422-ddb7-40b0-8c76-39a1991651ac.

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