California Bill Aims to Recognize Blockchain Records
The state of California has introduced a new bill that aims to recognize blockchain transactions, digital signatures, and smart contracts as a legal form of record. Assemblyman Ian Calderon introduced Assembly Bill 2658 on February 20 in order to re-define laws that apply to electronic records that take place within the state.
California State Assembly Person Introduces Blockchain Record Keeping Bill
An American lawmaker serving in the California State Assembly in the 57th district, Ian Calderon, wants blockchain records, and smart contracts to be covered under California law. Calderon, a Democrat from the Gateway Cities region, believes these types of records and definitions should be included the California court system. Essentially the bill proposes that records or signatures will not be able to be denied because they are presented in electronic form.
“A record that is secured through blockchain technology is an electronic record,” Assembly Bill 2658 explains.
A signature that is secured through blockchain technology is an ‘electronic signature’ and also updates the term ‘contract’ to account for smart contracts, or self-executing pieces of code that trigger when certain conditions (like a reaching a particular block number on a blockchain) are met.
Assembly Bill 2658 Will Also Cover Blockchain Storage
The California State Assembly bill will have to be approved by other state lawmakers alongside Governor Jerry Brown’s signature in order for it to become law. Calderon’s proposal aims to define blockchain storage recorded by blockchain technology as well. However, U.S. agencies can suspend a business licensee that provides electronic records if they failed to comply with certain sections of U.S. money transmission laws.
California’s State Assembly bill is very similar to bills introduced in Arizona, Vermont, and Florida. These three states also have lawmakers proposing new definitions and laws that recognize blockchain transactions, digital signatures, and smart contracts. If Assembly Bill 2658 pushes through California’s legislature and Governor Jerry Brown’s desk then the law will stay in place until January 1, 2021.
What do you think about the proposed bill that’s making its way towards California legislature? Do you think most U.S. states will follow this path? Let us know what you think in the comments below.
Images via Shutterstock, Ian Calderon’s Assembly office, and the California State Assembly.
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