California: Blockchain Signatures and Smart Contracts May Become Legally
A California lawmaker wants to make the blockchain signatures and smart contracts legal. The Assembly member Ian Calderon has proposed last week the Assembly Bill 2658, which refers to the possibility of including the electronic records on a blockchain technology.
He stated that “A record that is secured through blockchain technology is an electronic record”. However, the existing regulation related to the digital records states that “a record or signature may not be denied legal effect or enforceability solely because it is in electronic form and that a contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation”.
In terms of accepting the new law, it should be signed by Governor Jerry Brown and pass through the California’s legislature.
The new bill focuses on developing the blockchain signatures and Smart Contracts. It calls an electronic signature “a signature that is secured through blockchain technology”. Also, the law focuses on using the blockchain system to benefit from the information security. Thus, anyone who wants to store their data on a mathematical algorithm can be sure of their safety and limiting access to a single person.
According to the Assembly Bill 2658, Ian Calderon states about the licenses that “The department may suspend a licensee from providing records by electronic transmission if there is a pattern or practices that demonstrate the licensee has failed to comply with the requirements of this section. A licensee may appeal the suspension and resume its electronic transmission of records upon communication from the department that the changes the licensee made to its process or system to comply with the requirements of this section are satisfactory.”
We want to remember that Florida has already introduced a related regulation since January 2018. Also, we can mention Arizona as being another district to legalize the blockchain and smart contracts usage.
California’s bill is a big step forward, due to the fact that is being the largest state’s economy in the U.S. It will change for sure the way investors are analyzing the blockchain system.