Mar 19, 2025
What Makes an Electronic Signature Secure and Compliant? A Guide to U.S. Laws Like ESIGN and UETA
Electronic signatures are essential in today’s digital business landscape—but not all are legally or securely created. This guide breaks down U.S. laws like the ESIGN Act and UETA, highlights key risks, and explains why stronger identity verification is critical for true compliance.

Modern businesses move faster than ever, and handwriting your name on a physical document can feel slow or outdated in today’s global landscape. Electronic signatures step in as a smarter, faster alternative—but they also raise important questions around legal validity, compliance, and security.
As digital transactions become the norm, understanding how U.S. electronic signature laws like the ESIGN Act and UETA operate is no longer optional—it’s essential to reducing legal and financial risk. Below, we explain how these laws operate, what makes them unique, and how organizations can adopt safe and compliant eSignature solutions.
Note: While many people use the term “digital signature” to describe all types of electronic signing, it technically refers to a specific subset of electronic signatures that use cryptographic methods to verify identity and integrity. In this article, we’ll use the legally accurate term electronic signature when referring to ESIGN and UETA requirements.
Why Electronic Signatures Became Essential—and Riskier
At face value, electronic signatures offer undeniable advantages: they reduce paperwork, cut costs, and enable remote workflows. This became especially clear during the COVID-19 pandemic, when businesses urgently needed contactless, secure ways to close deals or finalize agreements from anywhere.
But speed and convenience come with a catch: not all eSignatures are created equal, and not all are legally or cryptographically secure. As usage grows, so do the stakes—especially when a weak or unverifiable signature could open the door to eSignature fraud, disputes, or regulatory trouble.
Core benefits of digital signing:
1. Speed and convenience: Sign from anywhere, anytime, through a secure digital interface.
2. Less paper waste: Electronic records replace bulky physical paperwork.
3. Enhanced audit trails: Many platforms log timestamps, IP addresses, and authentication data for greater traceability.
4. Cross-border deals: Electronic signatures simplify international transactions when compliant with applicable eSignature laws.
Yet even with these benefits, poorly implemented or low-assurance eSignatures can jeopardize enforceability—or worse, be exploited for impersonation and fraud. That’s where specific legal frameworks come into play, ensuring these signatures can stand up in court.
Key U.S. Laws for Electronic Signatures
In the U.S., two main laws govern electronic signatures: the federal ESIGN Act and the state-level UETA. Together, they form a foundation for the legal use of eSignatures in commerce.
ESIGN Act (Electronic Signatures in Global and National Commerce Act)
The ESIGN Act is a federal law enacted in 2000. It applies to both national and international transactions and ensures that electronic signatures hold the same enforceability under U.S. law as ink-on-paper signatures—provided that:
Both parties intend to sign,
Both signing parties provide consent to electronic transactions,
Signers are properly informed of their rights and options, and
Electronic records are securely retained in accessible formats for future reference.
In short, intent and consent matter most—but verifying that intent (and the signer’s identity) still depends on the reliability of the eSignature system in use.
UETA (Uniform Electronic Transactions Act)
UETA echoes many of ESIGN’s principles at the state level. Introduced in 1999 and adopted by most states (with New York and Illinois having similar statutes), it provides a legal framework for electronic transactions. Unlike the ESIGN Act, UETA does not apply to international transactions.
Similar to the ESIGN Act, UETA confirms that an electronic signature is valid if the signer intended to sign, provided consent, and if the eSignature platform supports secure record-keeping.
Together, both ESIGN Act and UETA ensure that electronic signatures carry the same legal effect as traditional handwritten signatures—as long as all parties consent and the eSignature platform used supports secure practices. Some document types, such as wills or court filings, may still require traditional procedures.
However, neither law mandates a specific level of identity verification—a gap that can expose businesses to unnecessary risk if platforms don’t go beyond the legal minimum.
Why Complying with Electronic Signature Laws Is Non-Negotiable
Ignoring or misunderstanding electronic signature laws can lead to serious consequences:
1. Legal disputes: If one party questions the validity of the signing process, they could challenge the contract’s enforceability.
2. Regulatory penalties: Some jurisdictions may penalize organizations that fail to provide the right disclosures or consent requirements.
3. Reputational damage: Clients, partners, or regulators might question the reliability if they suspect the eSignature process is weak or unverified.
Highly regulated industries—like finance, healthcare, and government procurement—demand strict compliance with electronic signature law, ensuring that each eSignature meets stringent security criteria. They expect robust authentication, traceability, and fraud resistance.
Compliance can’t be an afterthought. Especially in high-risk or cross-border use cases, it’s critical to choose an eSignature platform that offers advanced identity verification, granular audit trails, and jurisdiction-aware workflows.
Evolving Technology and the Future
Digital signature laws are evolving fast—and so are fraud tactics. Today, simply capturing a typed name isn’t enough. Emerging tools like biometric verification, real-time video analysis, and blockchain-secured signatures are redefining what secure, verifiable signing looks like.
Regulators are catching up, too. For example, the U.S. states are revisiting how remote notarization fits within the ESIGN Act and UETA. Staying compliant now means adopting technology that keeps pace with legal and security standards not just today, but tomorrow.
Conclusion
In today’s high-speed, high-risk digital environment, understanding U.S. laws like the ESIGN Act and UETA is a critical step toward protecting agreements, reputation, and bottom line. These laws confirm that electronic signatures are valid when there’s clear intent, consent, and a reliable record system in place.
However, they don’t define how secure that system must be.
That’s where stronger identity verification, secure audit trails, and fraud-resistant technology make all the difference. By adopting a compliant eSignature platform that goes beyond the legal minimum, businesses can reduce risk, accelerate workflows, and build trust with every transaction.
SecureSign eSignature platform is designed to do just that—ensuring every signature is not just valid, but authentic, verifiable, and protected against fraud and eSignature forgery.
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SecureSign combines legal compliance with unmatched identity verification, giving you the confidence to sign and send documents—even in the most high-stakes environments.
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