The American Fintech Council (AFC) is advocating for the swift passage of Assembly Bill 3307A by the New York State Assembly. This bill seeks to amend the state's Uniform Commercial Code (UCC) to address advancements in technology, particularly digital-first transactions. Sponsored by Assemblymember Alex Bores, the legislation aims to modernize New York's legal framework to accommodate digital transactions and provide clarity for emerging technologies.
Phil Goldfeder, CEO of the AFC and a former NY Assembly Member, stated, "New York State has long been a leader in the global financial ecosystem, and this legislation will ensure that it continues to lead the way in digital finance." He emphasized that passing the bill would signal New York's commitment to fostering responsible innovation and supporting fintech companies that contribute to job creation, improved access to financial services, and economic growth.
In correspondence with Standing Committee on Judiciary Chairman Charles Lavine, AFC highlighted its support for the bill and its role in promoting responsible innovation within New York. The proposed amendments aim to align New York's legal framework with modern technological advancements by reducing transaction costs and enhancing the efficiency, security, and reliability of commercial and financial transactions. These changes are expected to empower innovators, including AFC members, enabling them to offer consumers more affordable credit options and advanced payment solutions.
AFC pointed out that since UCC has not been updated since 2014, technology has significantly outpaced it. Without these updates, fintech companies might seek jurisdictions offering stronger support for innovation. The passage of this bill would bring New York's laws in line with other states' efforts to modernize UCC for new business models and digital transactions.
Ashley B. Urisman, Director of State Government Affairs at AFC remarked, "This bill is a crucial step in adapting the legal framework to support emerging technologies in New York State." She noted that these amendments would ensure New York remains at the forefront of commercial and financial progress by providing a stable legal environment for responsible fintech companies.
As a standards-based organization representing major fintech companies and innovative banks offering embedded finance solutions, AFC promotes a transparent financial system through responsible innovation. Its mission includes fostering competition in consumer finance while pioneering products aimed at better serving underserved consumer segments.