This week, a California lawmaker introduced a new bill, that, if it will be passed, could update the West Coast state’s electronic records laws to account for blockchain signatures and smart contracts.
According to CoinDesk, Assemblymember Ian Calderon submitted the Assembly Bill 2658 last week, with the main purpose of expanding the definition of electronic records and signatures, in order to include blockchain-based records and signatures as well.
“A record that is secured through blockchain technology is an electronic record,” the potential law is mentioning.
Several changes to be implemented if the bill passes
Currently, the existing law “specifies 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.”
Basically, it states that a signature made on a blockchain network would automatically be legally enforceable should the bill advance through the Californian legislature and then be signed by Governor Jerry Brown.
The new bill would also change the status of a signature secured through blockchain technology, claiming that it’s actually an electronic signature. The term “contract” will also be updated to account for smart contracts, as well as self-executing pieces of code that are triggered when certain conditions are met.
But this is not everything since the lawmaker actually proposed a very complex bill. Specifically, it will also address data storage on blockchain, proposing that individuals who use this type of network for securing personal information in the course of carrying out either interstate or foreign commerce should retain the rights of ownership to their information.
This bill is not actually a first for the US!
Last month, representatives in Florida introduced a similar bill in the state’s House, while those in Arizona already passed a bill, back in 2017, which provided a legal status for blockchain data and smart contracts.
In contrast, the Californian bill stands out, considering that it’s the state with the largest economy in the United States, having a GDP similar to that of countries like France.