A few months after landmark federal legislation gave the green light to ecommerce, some are asking whether state legislatures represent a red light down the road.

Are the years of struggle that preceded the signing into law of S.761- the Electronic Signatures in Global and National Commerce Act, or "E-Sign"- over? I can't imagine the states will go down without a fight," says Larry Zanger, a partner in the Chicago office of McBride Baker & Coles, and chairman of its Information Technology and Electronic Commerce (ITEC) Law department. Ecommerce encompasses online banking, where there have already been turf wars between state- and federal-level regulators, grappling with what jurisdiction means in cyberspace. Traditionally, state law governs the nuts and bolts working of almost all financial transactions, everything from the administration of trusts to mortgage lending. However, it's not at all clear yet what financial business is and is not governed by E-Sign.

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