On March 29, the Iowa House of Representatives passed a bill aimed at legal recognition of transactions and registrations using smart contracts. The SF541 bill got Senate approval earlier this month.

Under the new law, smart contracts will have the same legal status as regular contracts, and distributed ledger technology will be considered a trusted e-commerce site. As for smart contracts, the draft law states:

“The bill shows that the contract should not be void and void merely because the contract is a smart contract or contains a smart contract clause.”

The bill states that any registration of rights or property will not be canceled by broadcasting on the blockchain network, unless the transaction is specifically related to the transfer of the corresponding rights.

“ A person who, by engaging in or influencing intergovernmental or foreign trade, uses distributed ledger technology to protect the information that he or she possesses or is entitled to use, and has the same ownership rights or rights of use related to this information as it was before that person provided the information. Using ledger technology – indicated on the invoice with additional qualifications – unless linked to a transaction with terms that explicitly state the transfer of ownership or use of this information.

The bill was approved by the House of Representatives without competition on March 29, by a 94-0 vote. Earlier this month, the Senate bill passed the bill just as easily as it passed it with a score of 47-0.

Democratic spokesperson Steve Hansen has suggested that enforcement of the law will eventually lead to broader regulation of cryptocurrencies, including Bitcoin (BTC), according to The Gazette. Republican Rep. Jeff Shipley said the bill so far is more about defining tariffs than rules, adding that he believes Bitcoin will also fall within those tariffs.

Source: CoinTelegraph

LEAVE A REPLY