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Iowa House approves bill to legally recognize blockchain smart contracts

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On March 29, the Iowa House of Representatives handed a bill that seeks to legally recognize transactions and registrations made by way of blockchain smart contracts. The bill — SF541 — gained Senate approval earlier within the month.

Beneath the auspices of the brand new bill, smart contracts could be given the identical authorized standing as common contracts, whereas distributed-ledger know-how could be seen as a dependable digital retailer of report. Concerning smart contracts, the bill states:

“The bill provides that a contract shall not be denied legal effect or enforceability solely because the contract is a smart contract or contains a smart contract provision.”

The bill states that any registration of rights or possession wouldn’t be invalidated by its broadcast on a blockchain community except the transaction was associated particularly to the switch of the rights in query.

“A person who, in engaging in or affecting interstate or foreign commerce, uses distributed ledger technology to secure information that the person owns or has the right to use retains the same rights of ownership or use with respect to such information as before the person secured the information using distributed ledger technology,” states the bill, with the added qualifier, “unless in connection with a transaction with terms that expressly provide for the transfer of rights of ownership or use with respect to such information.”

The bill gained the approval of the House with out contest on March 29, with representatives voting 94-0. Earlier within the month, the bill made it via the Senate with related ease, because it handed with a vote of 47-0.

Democratic Consultant Steve Hansen urged the implementation of the bill would ultimately lead to broader regulation of cryptocurrency, together with Bitcoin (BTC), stories Iowa each day newspaper The Gazette. Republican Consultant Jeff Shipley mentioned the bill was extra involved with laying down definitions than laws in the intervening time, including that he thought Bitcoin would additionally fall beneath the scope of these definitions.

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