American Financial Services Association

AFSA Applauds Senate Action on the ESIGN Act

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AFSA Applauds Senate Action on the ESIGN Act

The Senate Committee on Commerce, Science, and Transportation this week approved S. 4159 – the Electronic Signatures in Global and National Commerce Act (E-SIGN Modernization Act), on a party-line vote, 14-12.

Consumers currently are required to reasonably demonstrate that they can access documents electronically before receiving an electronic version. This is an outdated policy, and the ESIGN Modernization Act simply removes this requirement and allows consumers looking to conduct business transactions online through their computer or smartphone devices to receive documents electronically.

When Sen. John Thune (R-SD) introduced the ESIGN Modernization Act in July, AFSA wrote a letter to the committee’s Chair and Ranking Member urging support for the bill’s passage. The committee’s approval of the ESIGN Modernization Act means consumers and businesses are one step closer to improved access to 21st century digital services and transactions.

It is unclear when the full Senate might consider the ESIGN Modernization Act on the floor. However, AFSA will continue to advocate for the bill, either as stand-alone legislation or as part of a broader legislative package later this year.

September 16th, 2020 by