On March 29, the Iowa House of Representatives passed a bill that seeks to legally recognize transactions and registrations made through blockchain smart contracts. The bill – SF541 – was approved by the Senate earlier this month.
Under the auspices of the new law smart contracts would acquire the same legal status as ordinary contracts, while distributed ledger technology would be considered a reliable electronic repository. As for smart contracts, account states:
“The bill stipulates that a contract cannot be resisted by legal effect or enforceability simply because the contract is a smart contract or contains provisions of a smart contract.”
The bill states that any registration of rights or property would not be invalidated by its broadcast on the blockchain network, unless the transaction specifically concerned the transfer of the rights in question.
‘A person who, in engaging in or influencing interstate or foreign trade, uses distributed ledger technology to secure information which that person owns or has the right to use shall retain the same ownership or usage rights in respect of such information, as in front of the detained person. information using distributed ledger technology, “states the draft law with added qualifications,” unless it is in connection with a transaction with conditions that explicitly provide for the transfer of ownership or use with respect to that information. “
The bill received the approval of the Chamber of Deputies without competition on March 29, with representatives voting 94-0. At the beginning of the month, the proposal reached the Senate with similar ease passed with a vote of 47-0.
Democrat Steve Hansen suggested that the implementation of the law would eventually lead to a broader regulation of cryptocurrency, including bitcoin (BTC), news Iowa Journal. Republican Representative Jeff Shipley said the bill was currently more concerned with setting definitions than with regulation, adding that he thought bitcoins also fell within the scope of those definitions.