United States: Illinois legalizes smart contracts based on blockchain technology

In Illinois, the United States, they recognized smart contracts and other blockchain-based registrations as legal instruments, Coindesk reported on January 9.

As published, the Illinois State Blockchain Technology Act, sponsored by representative Keith Wheeler (R), entered into force from January 1, which opens a series of possible new legal scenarios for smart contracts based on blockchain technology

Such contracts may be admitted as evidence in court, which are recognized as a viable alternative to paper records and legally exempt from local taxes, they stand out.

According to the article, the law expresses the following: “The legal effect or enforceability of a smart contract, registration or signature cannot be denied solely because a blockchain was used to create, store or verify the smart contract, registration or signature ».

The new Illinois regulatory framework extends the same legal recognition that paper contracts already enjoy to contracts and agreements created with blockchain technology to be recognized as legally binding in the eyes of the state, the source said.

It also protects the blockchain industry so that the local government cannot establish taxes and regulations or require licenses or permits in blockchain systems or those that use them.

Alison Mangiero, president of the blockchain technology company TQ Tezos and defender of the law, said: “The law guarantees that companies and individual members of the community will not have to navigate a mosaic of local blockchain regulation.”

Its sponsors in the Illinois state legislature praised the bill when it was passed as a means to provide businesses and businesses with a legal framework for adopting new technologies. Mangiero said that legal certainty and stability will allow companies to focus their efforts on developing new uses for technology, including transaction facilitation, as the source points out.

For his part, Tatyana Ruderman, a lawyer at the InfoLawGroup offices in Chicago, said the new law could reinforce companies seeking to use record systems based on blockchain technology. The lawyer added: “The law is likely to be proven in court by the parties that later want to try and invalidate a blockchain transaction.”

Ruderman noted a possible obstacle to the success of the law in Illinois as the fact that by legally recognizing smart contracts and blockchain technology, it does not mean that another border state, such as Indiana, also does the same. In that regard, he said:

“It may not make sense for companies operating outside of Illinois to implement blockchain-based contract management only in Illinois and not elsewhere … This may be an area where it makes sense for the industry to come together and agree on some standards to fill the gaps ».

Arizona Blockchain Records Law

This would not be the first state in North America to pass a law for blockchain registrations. In 2017, a bill was passed in Arizona that recognizes blockchain firms and smart contracts legally.

The measure introduced at the beginning of February of that year, sought to consecrate the signatures registered in a chain of blocks and smart contracts, says the source. The purpose of the bill was to consider them in “electronic format and as electronic records,” as the source points out. Arizona Governor Doug Ducey signed the bill on March 29, two days after it was sent by the state Senate.

The text says: »A firm that is insured through blockchain technology is considered in electronic form and is an electronic signature .. a registry or contract that is secured through blockchain technology is considered in electronic form and is a record electronic”

Reference: bitcoin.es

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

You may also like...