Task Force on Digital Technologies
ABOUT THE TASK FORCE ON DIGITAL TECHNOLOGIES
The New York City Bar Association (City Bar) Task Force on Digital Technologies is composed of more than 100 representatives of 47 committees of the City Bar and adjunct members, including lawyers, academics, trade association representatives, consultants, technologists, and others. Virtually every City Bar practice area is represented on the Task Force. The primary mission of the Task Force is to create a Center of Excellence and Thought Leadership in Digital Technologies, including innovative technologies that create new or enhanced products and services, digital assets, and more efficient, convenient, and effective ways of doing business.
ORGANIZATION OF THE TASK FORCE
The Task Force is led by three co-chairs and subcommittee co-chairs from 14 subcommittees that focus on a discrete, and often overlapping, area of digital technologies. In alphabetical order the subcommittees include:
1. Subcommittee on Articles and Blogs (Angelena Bradfield and Edwin Smith, co-chairs)
The Subcommittee on Articles and Blogs works with the Task Force Co-Chairs to encourage and promote opportunities for Task Force members to draft timely and topical articles, blogs, alerts and other writings that would be approved by at least three members of the subcommittee and posted on the Task Force Dashboard; to seek and obtain permission from other authors of articles, blogs, alerts, and other writings on digital technologies issues and to provide links of those articles, blogs, alerts, and other writings to the Task Force Dashboard.
2. Subcommittee on Artificial Intelligence (Azish Filabi, Adele Hogan, and Stuart Levi, co-chairs)
The Subcommittee on Artificial Intelligence works with the Task Force Co-Chairs to conduct research on issues involving artificial intelligence; draft articles, blogs, reports, and other writings analyzing artificial intelligence issues; review and analyze in writing articles, blogs, reports, and other writings on artificial intelligence issues drafted by others; host seminars and webinars on artificial intelligence issues; and record podcasts on artificial intelligence issues.
3. Subcommittee on Cryptocurrencies (Tracey Chenoweth and Gregory Rowland, co-chairs)
The Subcommittee on Cryptocurrencies works with the Task Force Co-Chairs to conduct research on issues involving cryptocurrencies; draft articles, blogs, reports, and other writings analyzing cryptocurrencies issues; review and analyze in writing articles, blogs, reports, and other writings on cryptocurrencies issues drafted by others; host seminars and webinars on cryptocurrencies issues; and record podcasts on cryptocurrencies issues.
4. Subcommittee on Cybersecurity, Privacy and Data Protection (Irene Byhovsky, Brian Rauer, Alexander Southwell, and Adam Scott Wandt, co-chairs)
The Subcommittee on Cybersecurity, Privacy and Data Protection works with the Task Force Co-Chairs to conduct research on issues involving cybersecurity, privacy and data protection; draft articles, blogs, reports, and other writings analyzing cybersecurity, privacy and data protection issues; review and analyze in writing articles, blogs, reports, and other writings on cybersecurity, privacy and data protection issues drafted by others; host seminars and webinars on cybersecurity, privacy, and data protection issues; and record podcasts on cybersecurity, privacy and data protection issues.
5. Subcommittee on the Digital Divide (Robert Marchman and Jolevette Mitchell, co-chairs)
The Subcommittee on the Digital Divide works with the Task Force Co-Chairs to conduct research on issues involving the digital divide; draft articles, blogs, reports, and other writings analyzing digital divide issues; review and analyze in writing articles, blogs, reports, and other writings on digital divide issues drafted by others; host seminars and webinars on digital divide issues; and record podcasts on digital divide issues.
6. Subcommittee on Digital Technologies Consumer Protection (Melissa Baal Guidorizzi and Eamonn Moran, co-chairs)
The Subcommittee on Digital Technologies Consumer Protection works with the Task Force Co-Chairs to conduct research on issues involving digital technologies consumer protection; draft articles, blogs, reports, and other writings analyzing digital technologies consumer protection issues; review and analyze in writing articles, blogs, reports, and other writings on digital technologies consumer protection issues drafted by others; host seminars and webinars on digital technologies consumer protection issues; and record podcasts on digital technologies consumer protection issues.
7. Subcommittee on Distributed Ledger Technology and Blockchain (Ben Melnicki, Robert Schwinger and Hector Velez, co-chairs)
The Subcommittee on Distributed Ledger Technology and Blockchain works with the Task Force Co-Chairs to conduct research on issues involving distributed ledger technology and blockchain; draft articles, blogs, reports, and other writings analyzing distributed ledger technology and blockchain issues; review and analyze in writing articles, blogs, reports, and other writings on distributed ledger technology and blockchain issues drafted by others; host seminars and webinars on distributed ledger technology and blockchain issues; and record podcasts on distributed ledger technology and blockchain issues.
8. Subcommittee on Electronic Mobility Services (Margaret Barry, Matthew Daus, and Elizabeth Stein, co-chairs)
The Subcommittee on Electronic Mobility Services works with the Task Force Co-Chairs to conduct research on issues involving electronic mobility services; draft articles, blogs, reports, and other writings analyzing electronic mobility services issues; review and analyze in writing articles, blogs, reports, and other writings on electronic mobility services issues drafted by others; host seminars and webinars on electronic mobility services issues; and record podcasts on electronic mobility services issues.
9. Subcommittee on Ethics in Digital Technologies (David Keyko and Tyler Maulsby, co-chairs)
The Subcommittee on Ethics in Digital Technologies works with the Task Force Co-Chairs to conduct research on issues involving ethics in digital technologies; draft articles, blogs, reports, and other writings analyzing ethics in digital technologies issues; review and analyze in writing articles, blogs, reports, and other writings on ethics in digital technologies issues drafted by others; host seminars and webinars on ethics in digital technologies issues; and record podcasts on ethics in digital technologies issues.
10. Subcommittee on Law Enforcement and Regulatory Agency Digital Technologies Actions (Kyle Armstrong, co-chair)
The Subcommittee on Law Enforcement and Regulatory Agency Digital Technologies Actions works with the Task Force Co-Chairs to conduct research on issues involving the law enforcement and regulatory agency digital technologies actions; draft articles, blogs, reports, and other writings analyzing law enforcement and regulatory agency digital technologies actions; review and analyze in writing articles, blogs, reports, and other writings on law enforcement and regulatory agency digital technologies actions drafted by others; host seminars and webinars on law enforcement and regulatory agency digital technologies actions; and record podcasts on law enforcement and regulatory agency digital technologies actions.
11. Subcommittee on the Metaverse (Terrence Dugan and Flora Lau, co-chairs)
The Subcommittee on the Metaverse works with the Task Force Co-Chairs to conduct research on issues involving the metaverse; draft articles, blogs, reports, and other writings analyzing metaverse issues; review and analyze in writing articles, blogs, reports, and other writings on metaverse issues drafted by others; host seminars and webinars on metaverse issues; and record podcasts on metaverse issues.
12. Subcommittee on Non-Fungible Tokens (Mana Ghaemmaghami and Tiffany Smith, co-chairs)
The Subcommittee on Non-Fungible Tokens works with the Task Force Co-Chairs to conduct research on issues involving non-fungible tokens; draft articles, blogs, reports, and other writings analyzing non-fungible tokens issues; review and analyze in writing articles, blogs, reports, and other writings on non-fungible tokens issues drafted by others; host seminars and webinars on non-fungible tokens issues; and record podcasts on non-fungible tokens issues.
13. Subcommittee on Payment Services and Systems (Muhseen Abdoolraman, Stephen Aschettino and Pratin Vallabhaneni, co-chairs)
The Subcommittee on Payment Services and Systems works with the Task Force Co-Chairs to conduct research on issues involving payment services and systems; draft articles, blogs, reports, and other writings analyzing payment services and systems issues; review and analyze in writing articles, blogs, reports, and other writings on payment services and systems issues drafted by others; host seminars and webinars on payment services and systems issues; and record podcasts on payment services and systems issues.
14. Subcommittee on Web3 (Lewis Cohen and Beth Haddock, co-chairs)
The Subcommittee on Web3 works with the Task Force Co-Chairs to conduct research on issues involving decentralized autonomous organizations (DAOs) and decentralized finance (Defi); draft articles, blogs, reports, and other writings analyzing DAOs and Defi issues; review and analyze in writing articles, blogs, reports, and other writings on DAOs and Defi issues drafted by others; host seminars and webinars on DAOs and Defi issues; and record podcasts on DAOs and Defi issues.
WORK TO DATE
In January 2023, the Task Force hosted the City Bar’s first CLE Program on 22 N.Y.C.R.R. 1500, which requires New York lawyers to obtain CLE credits in Cybersecurity, Privacy and Data Protection. The program was moderated by Irene Byhovsky, Co-Chair of the Subcommittee on Cybersecurity, Privacy and Data Protection, and panelists included Alona Katz, Member of the Subcommittee on Cybersecurity, Privacy and Data Protection, Brian Rauer, Co-Chair of the Subcommittee on Cybersecurity, Privacy and Data Protection, and Adam Scott Wandt, Co-Chair of the Subcommittee on Cybersecurity, Privacy and Data Protection. The CLE program is still one of the most well attended CLE programs for the City Bar.
In February 2023, the Task Force released its Report in Support of the Enactment of the New York Version of the Amendments to the Official Text of the Uniform Commercial Code (2022). The Report is the product of 17 months of hard work and collaboration of more than 100 professionals. The Amendments are designed to modernize, rationalize, and clarify New York’s UCC so that it effectively governs important transactions in digital assets, while applying to certain digital assets the unique characteristics of New York law that facilitate the negotiability of written instruments and, thereby, enhance transactional certainty. The Amendments also further the purpose of New York’s Electronic Signature and Records Act – now almost a quarter-century old – to make commercial law more media-neutral in order to facilitate electronic commerce, i.e., use of technology to accomplish transactions traditionally based on delivery of signed paper documents. Most importantly, the Amendments utilize the concept of a Controllable Electronic Record (CER) to provide legal recognition for, and thereby facilitate the creation of, a broad range of new forms of intangible property or digital assets (rather than limiting digital assets to specifically enumerated types of property) and to define the rights of purchasers of such digital assets in order to enhance their commercial utility. Second, CER is defined broadly, so that it is technology-neutral and not limited to any particular existing technology utilized to establish control. Third, the Amendments specifically recognize controllable accounts, and controllable payment intangibles, as digital assets. These are accounts and payment intangibles which, by their terms, the obligor has agreed are payable only to the person in control of a specified CER.
Enactment of the New York Amendments will eliminate existing impediments to the choice of New York law and jurisdiction to govern transactions in, and to resolve disputes concerning, digital assets. More than that, enactment of the Amendments would make choice of New York law and jurisdiction affirmatively attractive for purchasers of digital assets. This will further New York’s long-standing goals (i) of encouraging choice of New York law and jurisdiction to govern commercial contracts and (ii) of making the advantages of electronic commerce available to the greatest extent in New York. The Amendments, crafted specifically for New York, are intended to preserve, and apply existing New York-specific principles, particularly those protecting the rights of good faith purchasers of negotiable instruments and documents, to transactions involving digital assets which are the electronic equivalent of such instruments and documents. By updating New York’s UCC to cover all digital assets that are CERs, prompt enactment of the Amendments would encourage parties to choose New York law and courts to govern commerce in digital assets, particularly those which function as electronic money or electronic notes, drafts, bills of exchange, or other electronic media.
The Task Force Report includes a proposed bill that could be used to update the New York UCC. Task Force leaders, in coordination with the City Bar’s Policy Department, Uniform Law Commissioners, and American Law Institute representatives, periodically conduct outreach to policymakers and their staff and other stakeholders to gain support and sponsorship for the proposed amendments that have been introduced in New York.
In May 2023, the Task Force introduced a 12-part Podcast Series on Digital Technologies. The podcasts are available on the Task Force Dashboard and are an excellent source for identifying the most important digital technologies issues.
In addition, in May 2023, the Task Force agreed to partner with the City Bar Council on Judicial Administration (CJA) to establish a Working Group on Judicial Administration and Artificial Intelligence (JAAI) to address current and potential issues related to the use of artificial intelligence within the New York State judiciary and judicial process. JAAI plans to issue recommendations for the New York State judiciary. JAAI is Co-Chaired by CJA Member and Judicial Law Clerk Harut Minasian and Task Force Co-Chair, Jerome Walker, Partner at Jerome Walker PLLC. Other members of JAAI include CJA Member and New York City Criminal Court Judge Abena Darkeh; Task Force Member and Alfred M. Rankin Professor of Law, founding Faculty Director of the Solomon Center for Health Law and Policy at Yale Law School, Professor of Internal Medicine (General Medicine) at Yale School of Medicine, and a Professor in the Institution for Social and Policy Studies at Yale, Abbe Gluck; CJA Member, City Bar Federal Courts Committee, Chair and Morrison Cohen Partner Richard Hong; Task Force Subcommittee on Artificial Intelligence, Co-Chair and Skadden Arps Partner Stuart Levi; CJA and Task Force Member Rick Scarola, Partner at Scarola Zubatov Schaffzin; CJA Member and Retired Chief Clerk of New York Supreme Court, New York County Civil Branch John F. Werner; and Task Force Member and Baker McKenzie Partner David Zaslowsky.
In May 2023, the Task Force established a Working Group to Study the New York Attorney General Proposal to Regulate the Cryptocurrency Industry. This working group includes a cross disciplinary group of 17 Task Force Members across multiple practice areas. Simultaneously, the Task Force established a Working Group to Study the House Financial Services Committee and House Committee on Agriculture Discussion Draft of Legislation Providing a Statutory Framework for Digital Asset Regulation. This working group includes a cross disciplinary group of 35 Task Force Members across multiple practice areas.
In June 2023, the Task Force, jointly with the City Bar Commercial Law & Uniform State Laws Committee, hosted the City Bar’s first CLE program on How The 2022 Amendments to the Uniform Commercial Code Will Affect Your Practice.
On June 14, the Task Force released a podcast introducing the Task Force.
On August 1, the Task Force released a podcast on The ChatGPT Case (Mata v. Avianca, Inc.) and AI in Courts.
On August 10, the Task Force released a podcast on Web3 - The World of Decentralized Tech.
Similarly, in October 2023, the Task Force worked together with the City Bar Compliance Committee to complete a Compliance Committee Report on Artificial Intelligence and Machine Learning in Financial Services: Opportunities and Challenges in Anti-Money Laundering and Combatting the Financing of Terrorism.
On October 12, 2023, the Task Force hosted the City Bar’s first CLE program on The State of Stablecoins. The program covered regulated stablecoins (not algorithmic products); a survey of banking, securities, and other applicable laws and risk management, governance, and compliance issues; a survey of legal, regulatory and policy issues; federal and state efforts with an emphasis on banking and securities; custody, operational resilience, and contagion/systemic risk; disclosures, financial audits, and the expectations of stakeholders; international efforts – MICA as an example for comparative analysis; US legislative proposals; types of stablecoin products; benefits and risks; risk management discussion for product development; BIS Annual Economic Report and Financial Stability Board recommendations; ethics for navigating compliance; Europe’s encouragement of early adoption of MICA, US regulatory alerts, and other developments; compliance programs for state and federal oversight; global best practices for operational resiliency and distribution issues; and what market participants and other stakeholders should expect in the future.
Likewise, on October 12, the Task Force released a podcast on Asset Tokenization and Blockchain.
In addition, on November 15, the Task Force released a podcast further explaining the importance of New York updating the New York Uniform Commercial Code, which is available at https://www.nycbar.org/media-listing/media/detail/updating-new-yorks-uniform-commercial-code
Finally, on November 30, JAAI released a podcast about AI in a criminal case called Is AI in Litigation Ready for Primetime? (U.S. v. Michel), which is available at https://www.nycbar.org/media-listing/media/detail/is-ai-in-litigation-ready-for-primetime-us-v-michel
UPCOMING PROJECTS
In December 2023/January 2024, the Task Force plans to release podcasts on (1) the November 7, CFPB Proposal and Request for Public Comment on Defining Larger Participants of a Market for General Use Digital Consumer Payment Applications; (2) the Digital Divide; (3) the Metaverse; and (4) Ethics in Digital Technologies.
On February 23, 2024, the Task Force, jointly with the City Bar Banking Law Committee, the City Bar Compliance Committee, and the City Bar White Collar Crimes Committee, plan to host an Emerging Technologies Symposium.
On June 10, 2024, and June 17, 2024, the Task Force plans to host a two-part comprehensive Symposium on Digital Technologies.
Last updated on November 30, 2023
Lorraine McGowen: City Bar Task Force on Digital Technologies, Co-Chair; City Bar Commercial Law & Uniform State Laws Committee, Member; Partner, Orrick, Herrington & Sutcliffe LLP.
Edward So: City Bar Task Force on Digital Technologies, Co-Chair; City Bar Futures & Derivatives Regulation Committee, Secretary; Partner, White & Case.
Jerome Walker: City Bar Task Force on Digital Technologies, Co-Chair; City Bar Compliance Committee, Subcommittee on Technology, Cybersecurity and Data Privacy, Co-Chair; Partner, Jerome Walker PLLC.
Digital assets began to evolve several decades ago, and the Uniform Commercial Code (UCC) has periodically been amended to accommodate their existence. Since the last comprehensive revisions to the Uniform Law Commission’s Official Text of the UCC, promulgated in 2010 and substantially adopted by the New York Legislature in 2014, electronic commerce has continued to expand and evolve and become ever more important to the US and world economy. Furthermore, during the past decade, emerging technologies have led to the creation of an entirely new class of digital assets, which exist on distributed ledger or blockchain platforms and can be used to accomplish an increasing number and variety of transactions. The New York UCC currently recognizes only electronic documents of title and electronic chattel paper as digital assets. These digital assets dramatically transform commerce, but their legal effect is subject to significant uncertainties requiring a clear modern legal structure if they are to achieve their full potential.
For a detailed this discussion of the importance of digital technologies and commercial law, please read the Report by the Task Force on Digital Technologies in Support of Enactment of the New York Version of the Amendments to the Official Text of the Uniform Commercial Code (2022) (February 2023)
Task Force on Digital Technologies
ABOUT THE TASK FORCE ON DIGITAL TECHNOLOGIES
The New York City Bar Association (City Bar) Task Force on Digital Technologies is composed of more than 100 representatives of 47 committees of the City Bar and adjunct members, including lawyers, academics, trade association representatives, consultants, technologists, and others. Virtually every City Bar practice area is represented on the Task Force. The primary mission of the Task Force is to create a Center of Excellence and Thought Leadership in Digital Technologies, including innovative technologies that create new or enhanced products and services, digital assets, and more efficient, convenient, and effective ways of doing business.
ORGANIZATION OF THE TASK FORCE
The Task Force is led by three co-chairs and subcommittee co-chairs from 14 subcommittees that focus on a discrete, and often overlapping, area of digital technologies. In alphabetical order the subcommittees include:
1. Subcommittee on Articles and Blogs (Angelena Bradfield and Edwin Smith, co-chairs)
The Subcommittee on Articles and Blogs works with the Task Force Co-Chairs to encourage and promote opportunities for Task Force members to draft timely and topical articles, blogs, alerts and other writings that would be approved by at least three members of the subcommittee and posted on the Task Force Dashboard; to seek and obtain permission from other authors of articles, blogs, alerts, and other writings on digital technologies issues and to provide links of those articles, blogs, alerts, and other writings to the Task Force Dashboard.
2. Subcommittee on Artificial Intelligence (Azish Filabi, Adele Hogan, and Stuart Levi, co-chairs)
The Subcommittee on Artificial Intelligence works with the Task Force Co-Chairs to conduct research on issues involving artificial intelligence; draft articles, blogs, reports, and other writings analyzing artificial intelligence issues; review and analyze in writing articles, blogs, reports, and other writings on artificial intelligence issues drafted by others; host seminars and webinars on artificial intelligence issues; and record podcasts on artificial intelligence issues.
3. Subcommittee on Cryptocurrencies (Tracey Chenoweth and Gregory Rowland, co-chairs)
The Subcommittee on Cryptocurrencies works with the Task Force Co-Chairs to conduct research on issues involving cryptocurrencies; draft articles, blogs, reports, and other writings analyzing cryptocurrencies issues; review and analyze in writing articles, blogs, reports, and other writings on cryptocurrencies issues drafted by others; host seminars and webinars on cryptocurrencies issues; and record podcasts on cryptocurrencies issues.
4. Subcommittee on Cybersecurity, Privacy and Data Protection (Irene Byhovsky, Brian Rauer, Alexander Southwell, and Adam Scott Wandt, co-chairs)
The Subcommittee on Cybersecurity, Privacy and Data Protection works with the Task Force Co-Chairs to conduct research on issues involving cybersecurity, privacy and data protection; draft articles, blogs, reports, and other writings analyzing cybersecurity, privacy and data protection issues; review and analyze in writing articles, blogs, reports, and other writings on cybersecurity, privacy and data protection issues drafted by others; host seminars and webinars on cybersecurity, privacy, and data protection issues; and record podcasts on cybersecurity, privacy and data protection issues.
5. Subcommittee on the Digital Divide (Robert Marchman and Jolevette Mitchell, co-chairs)
The Subcommittee on the Digital Divide works with the Task Force Co-Chairs to conduct research on issues involving the digital divide; draft articles, blogs, reports, and other writings analyzing digital divide issues; review and analyze in writing articles, blogs, reports, and other writings on digital divide issues drafted by others; host seminars and webinars on digital divide issues; and record podcasts on digital divide issues.
6. Subcommittee on Digital Technologies Consumer Protection (Melissa Baal Guidorizzi and Eamonn Moran, co-chairs)
The Subcommittee on Digital Technologies Consumer Protection works with the Task Force Co-Chairs to conduct research on issues involving digital technologies consumer protection; draft articles, blogs, reports, and other writings analyzing digital technologies consumer protection issues; review and analyze in writing articles, blogs, reports, and other writings on digital technologies consumer protection issues drafted by others; host seminars and webinars on digital technologies consumer protection issues; and record podcasts on digital technologies consumer protection issues.
7. Subcommittee on Distributed Ledger Technology and Blockchain (Ben Melnicki, Robert Schwinger and Hector Velez, co-chairs)
The Subcommittee on Distributed Ledger Technology and Blockchain works with the Task Force Co-Chairs to conduct research on issues involving distributed ledger technology and blockchain; draft articles, blogs, reports, and other writings analyzing distributed ledger technology and blockchain issues; review and analyze in writing articles, blogs, reports, and other writings on distributed ledger technology and blockchain issues drafted by others; host seminars and webinars on distributed ledger technology and blockchain issues; and record podcasts on distributed ledger technology and blockchain issues.
8. Subcommittee on Electronic Mobility Services (Margaret Barry, Matthew Daus, and Elizabeth Stein, co-chairs)
The Subcommittee on Electronic Mobility Services works with the Task Force Co-Chairs to conduct research on issues involving electronic mobility services; draft articles, blogs, reports, and other writings analyzing electronic mobility services issues; review and analyze in writing articles, blogs, reports, and other writings on electronic mobility services issues drafted by others; host seminars and webinars on electronic mobility services issues; and record podcasts on electronic mobility services issues.
9. Subcommittee on Ethics in Digital Technologies (David Keyko and Tyler Maulsby, co-chairs)
The Subcommittee on Ethics in Digital Technologies works with the Task Force Co-Chairs to conduct research on issues involving ethics in digital technologies; draft articles, blogs, reports, and other writings analyzing ethics in digital technologies issues; review and analyze in writing articles, blogs, reports, and other writings on ethics in digital technologies issues drafted by others; host seminars and webinars on ethics in digital technologies issues; and record podcasts on ethics in digital technologies issues.
10. Subcommittee on Law Enforcement and Regulatory Agency Digital Technologies Actions (Kyle Armstrong, co-chair)
The Subcommittee on Law Enforcement and Regulatory Agency Digital Technologies Actions works with the Task Force Co-Chairs to conduct research on issues involving the law enforcement and regulatory agency digital technologies actions; draft articles, blogs, reports, and other writings analyzing law enforcement and regulatory agency digital technologies actions; review and analyze in writing articles, blogs, reports, and other writings on law enforcement and regulatory agency digital technologies actions drafted by others; host seminars and webinars on law enforcement and regulatory agency digital technologies actions; and record podcasts on law enforcement and regulatory agency digital technologies actions.
11. Subcommittee on the Metaverse (Terrence Dugan and Flora Lau, co-chairs)
The Subcommittee on the Metaverse works with the Task Force Co-Chairs to conduct research on issues involving the metaverse; draft articles, blogs, reports, and other writings analyzing metaverse issues; review and analyze in writing articles, blogs, reports, and other writings on metaverse issues drafted by others; host seminars and webinars on metaverse issues; and record podcasts on metaverse issues.
12. Subcommittee on Non-Fungible Tokens (Mana Ghaemmaghami and Tiffany Smith, co-chairs)
The Subcommittee on Non-Fungible Tokens works with the Task Force Co-Chairs to conduct research on issues involving non-fungible tokens; draft articles, blogs, reports, and other writings analyzing non-fungible tokens issues; review and analyze in writing articles, blogs, reports, and other writings on non-fungible tokens issues drafted by others; host seminars and webinars on non-fungible tokens issues; and record podcasts on non-fungible tokens issues.
13. Subcommittee on Payment Services and Systems (Muhseen Abdoolraman, Stephen Aschettino and Pratin Vallabhaneni, co-chairs)
The Subcommittee on Payment Services and Systems works with the Task Force Co-Chairs to conduct research on issues involving payment services and systems; draft articles, blogs, reports, and other writings analyzing payment services and systems issues; review and analyze in writing articles, blogs, reports, and other writings on payment services and systems issues drafted by others; host seminars and webinars on payment services and systems issues; and record podcasts on payment services and systems issues.
14. Subcommittee on Web3 (Lewis Cohen and Beth Haddock, co-chairs)
The Subcommittee on Web3 works with the Task Force Co-Chairs to conduct research on issues involving decentralized autonomous organizations (DAOs) and decentralized finance (Defi); draft articles, blogs, reports, and other writings analyzing DAOs and Defi issues; review and analyze in writing articles, blogs, reports, and other writings on DAOs and Defi issues drafted by others; host seminars and webinars on DAOs and Defi issues; and record podcasts on DAOs and Defi issues.
WORK TO DATE
In January 2023, the Task Force hosted the City Bar’s first CLE Program on 22 N.Y.C.R.R. 1500, which requires New York lawyers to obtain CLE credits in Cybersecurity, Privacy and Data Protection. The program was moderated by Irene Byhovsky, Co-Chair of the Subcommittee on Cybersecurity, Privacy and Data Protection, and panelists included Alona Katz, Member of the Subcommittee on Cybersecurity, Privacy and Data Protection, Brian Rauer, Co-Chair of the Subcommittee on Cybersecurity, Privacy and Data Protection, and Adam Scott Wandt, Co-Chair of the Subcommittee on Cybersecurity, Privacy and Data Protection. The CLE program is still one of the most well attended CLE programs for the City Bar.
In February 2023, the Task Force released its Report in Support of the Enactment of the New York Version of the Amendments to the Official Text of the Uniform Commercial Code (2022). The Report is the product of 17 months of hard work and collaboration of more than 100 professionals. The Amendments are designed to modernize, rationalize, and clarify New York’s UCC so that it effectively governs important transactions in digital assets, while applying to certain digital assets the unique characteristics of New York law that facilitate the negotiability of written instruments and, thereby, enhance transactional certainty. The Amendments also further the purpose of New York’s Electronic Signature and Records Act – now almost a quarter-century old – to make commercial law more media-neutral in order to facilitate electronic commerce, i.e., use of technology to accomplish transactions traditionally based on delivery of signed paper documents. Most importantly, the Amendments utilize the concept of a Controllable Electronic Record (CER) to provide legal recognition for, and thereby facilitate the creation of, a broad range of new forms of intangible property or digital assets (rather than limiting digital assets to specifically enumerated types of property) and to define the rights of purchasers of such digital assets in order to enhance their commercial utility. Second, CER is defined broadly, so that it is technology-neutral and not limited to any particular existing technology utilized to establish control. Third, the Amendments specifically recognize controllable accounts, and controllable payment intangibles, as digital assets. These are accounts and payment intangibles which, by their terms, the obligor has agreed are payable only to the person in control of a specified CER.
Enactment of the New York Amendments will eliminate existing impediments to the choice of New York law and jurisdiction to govern transactions in, and to resolve disputes concerning, digital assets. More than that, enactment of the Amendments would make choice of New York law and jurisdiction affirmatively attractive for purchasers of digital assets. This will further New York’s long-standing goals (i) of encouraging choice of New York law and jurisdiction to govern commercial contracts and (ii) of making the advantages of electronic commerce available to the greatest extent in New York. The Amendments, crafted specifically for New York, are intended to preserve, and apply existing New York-specific principles, particularly those protecting the rights of good faith purchasers of negotiable instruments and documents, to transactions involving digital assets which are the electronic equivalent of such instruments and documents. By updating New York’s UCC to cover all digital assets that are CERs, prompt enactment of the Amendments would encourage parties to choose New York law and courts to govern commerce in digital assets, particularly those which function as electronic money or electronic notes, drafts, bills of exchange, or other electronic media.
The Task Force Report includes a proposed bill that could be used to update the New York UCC. Task Force leaders, in coordination with the City Bar’s Policy Department, Uniform Law Commissioners, and American Law Institute representatives, periodically conduct outreach to policymakers and their staff and other stakeholders to gain support and sponsorship for the proposed amendments that have been introduced in New York.
In May 2023, the Task Force introduced a 12-part Podcast Series on Digital Technologies. The podcasts are available on the Task Force Dashboard and are an excellent source for identifying the most important digital technologies issues.
In addition, in May 2023, the Task Force agreed to partner with the City Bar Council on Judicial Administration (CJA) to establish a Working Group on Judicial Administration and Artificial Intelligence (JAAI) to address current and potential issues related to the use of artificial intelligence within the New York State judiciary and judicial process. JAAI plans to issue recommendations for the New York State judiciary. JAAI is Co-Chaired by CJA Member and Judicial Law Clerk Harut Minasian and Task Force Co-Chair, Jerome Walker, Partner at Jerome Walker PLLC. Other members of JAAI include CJA Member and New York City Criminal Court Judge Abena Darkeh; Task Force Member and Alfred M. Rankin Professor of Law, founding Faculty Director of the Solomon Center for Health Law and Policy at Yale Law School, Professor of Internal Medicine (General Medicine) at Yale School of Medicine, and a Professor in the Institution for Social and Policy Studies at Yale, Abbe Gluck; CJA Member, City Bar Federal Courts Committee, Chair and Morrison Cohen Partner Richard Hong; Task Force Subcommittee on Artificial Intelligence, Co-Chair and Skadden Arps Partner Stuart Levi; CJA and Task Force Member Rick Scarola, Partner at Scarola Zubatov Schaffzin; CJA Member and Retired Chief Clerk of New York Supreme Court, New York County Civil Branch John F. Werner; and Task Force Member and Baker McKenzie Partner David Zaslowsky.
In May 2023, the Task Force established a Working Group to Study the New York Attorney General Proposal to Regulate the Cryptocurrency Industry. This working group includes a cross disciplinary group of 17 Task Force Members across multiple practice areas. Simultaneously, the Task Force established a Working Group to Study the House Financial Services Committee and House Committee on Agriculture Discussion Draft of Legislation Providing a Statutory Framework for Digital Asset Regulation. This working group includes a cross disciplinary group of 35 Task Force Members across multiple practice areas.
In June 2023, the Task Force, jointly with the City Bar Commercial Law & Uniform State Laws Committee, hosted the City Bar’s first CLE program on How The 2022 Amendments to the Uniform Commercial Code Will Affect Your Practice.
On June 14, the Task Force released a podcast introducing the Task Force.
On August 1, the Task Force released a podcast on The ChatGPT Case (Mata v. Avianca, Inc.) and AI in Courts.
On August 10, the Task Force released a podcast on Web3 - The World of Decentralized Tech.
Similarly, in October 2023, the Task Force worked together with the City Bar Compliance Committee to complete a Compliance Committee Report on Artificial Intelligence and Machine Learning in Financial Services: Opportunities and Challenges in Anti-Money Laundering and Combatting the Financing of Terrorism.
On October 12, 2023, the Task Force hosted the City Bar’s first CLE program on The State of Stablecoins. The program covered regulated stablecoins (not algorithmic products); a survey of banking, securities, and other applicable laws and risk management, governance, and compliance issues; a survey of legal, regulatory and policy issues; federal and state efforts with an emphasis on banking and securities; custody, operational resilience, and contagion/systemic risk; disclosures, financial audits, and the expectations of stakeholders; international efforts – MICA as an example for comparative analysis; US legislative proposals; types of stablecoin products; benefits and risks; risk management discussion for product development; BIS Annual Economic Report and Financial Stability Board recommendations; ethics for navigating compliance; Europe’s encouragement of early adoption of MICA, US regulatory alerts, and other developments; compliance programs for state and federal oversight; global best practices for operational resiliency and distribution issues; and what market participants and other stakeholders should expect in the future.
Likewise, on October 12, the Task Force released a podcast on Asset Tokenization and Blockchain.
In addition, on November 15, the Task Force released a podcast further explaining the importance of New York updating the New York Uniform Commercial Code, which is available at https://www.nycbar.org/media-listing/media/detail/updating-new-yorks-uniform-commercial-code
Finally, on November 30, JAAI released a podcast about AI in a criminal case called Is AI in Litigation Ready for Primetime? (U.S. v. Michel), which is available at https://www.nycbar.org/media-listing/media/detail/is-ai-in-litigation-ready-for-primetime-us-v-michel
UPCOMING PROJECTS
In December 2023/January 2024, the Task Force plans to release podcasts on (1) the November 7, CFPB Proposal and Request for Public Comment on Defining Larger Participants of a Market for General Use Digital Consumer Payment Applications; (2) the Digital Divide; (3) the Metaverse; and (4) Ethics in Digital Technologies.
On February 23, 2024, the Task Force, jointly with the City Bar Banking Law Committee, the City Bar Compliance Committee, and the City Bar White Collar Crimes Committee, plan to host an Emerging Technologies Symposium.
On June 10, 2024, and June 17, 2024, the Task Force plans to host a two-part comprehensive Symposium on Digital Technologies.
Last updated on November 30, 2023
Lorraine McGowen: City Bar Task Force on Digital Technologies, Co-Chair; City Bar Commercial Law & Uniform State Laws Committee, Member; Partner, Orrick, Herrington & Sutcliffe LLP.
Edward So: City Bar Task Force on Digital Technologies, Co-Chair; City Bar Futures & Derivatives Regulation Committee, Secretary; Partner, White & Case.
Jerome Walker: City Bar Task Force on Digital Technologies, Co-Chair; City Bar Compliance Committee, Subcommittee on Technology, Cybersecurity and Data Privacy, Co-Chair; Partner, Jerome Walker PLLC.
Digital assets began to evolve several decades ago, and the Uniform Commercial Code (UCC) has periodically been amended to accommodate their existence. Since the last comprehensive revisions to the Uniform Law Commission’s Official Text of the UCC, promulgated in 2010 and substantially adopted by the New York Legislature in 2014, electronic commerce has continued to expand and evolve and become ever more important to the US and world economy. Furthermore, during the past decade, emerging technologies have led to the creation of an entirely new class of digital assets, which exist on distributed ledger or blockchain platforms and can be used to accomplish an increasing number and variety of transactions. The New York UCC currently recognizes only electronic documents of title and electronic chattel paper as digital assets. These digital assets dramatically transform commerce, but their legal effect is subject to significant uncertainties requiring a clear modern legal structure if they are to achieve their full potential.
For a detailed this discussion of the importance of digital technologies and commercial law, please read the Report by the Task Force on Digital Technologies in Support of Enactment of the New York Version of the Amendments to the Official Text of the Uniform Commercial Code (2022) (February 2023)
