New Connecticut House Bill 7310 Looks to Legalize Blockchain Smart Contracts for Businesses
Connecticut Lawmakers Want To Legalize Smart Contracts
The lawmakers at the Commerce Committee of Connecticut have recently filled the House Bill 7310, which, if it passes, can legalize the usage of smart contracts based in the blockchain technology for the first time in the state.
According to the house bill, blockchain-based smart contracts would have their usage authorized in the commerce in Connecticut. The bill states that no contract should have its legal effect denied because it is based on smart contract technology.
One of the main effects of this law is that it would give equal rights to companies who decide to use smart contracts like the ones who use more traditional methods to secure contracts. This is important because the technology currently stays in a grey area and its legal applications are unknown, at best.
According to the Chamber of Digital Commerce or Connecticut, which represents the blockchain industry in the state, however, legislating over smart contracts can actually harm the industry.
The chamber defends the idea that smart contracts do not need to be legalized and that this could undermine the growth of the industry, which actually sounds like a very contra productive argument.
At the time, the organization has affirmed that the existing legal frameworks already cover the blockchain technology, so it does not make any sense to create new laws for this. This could change the definitions of how these contracts are used and create more headaches than solutions for the people in the industry, which can be a bad idea.
Because of this, the organization deems these laws as unnecessary and affirms that they will only be used to confuse the application of the current law. The opinion is controversial, however, and not all blockchain organizations agree with it.
Legalizing Smart Contracts In The US
Connecticut is not the only state which is working in order to turn the digital space into something that is more regulated. Recently, a similar bill was passed in the U. S. state of Florida. The law, which was passed last August, treats blockchain ledgers and smart contracts as methods of storing data that can be considered legally-binding in court.
In the following months or years, we will probably see a lot more of these initiatives as the industry is growing a lot recently and this always means that there is a further need for more regulation.
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In rounding off this piece: New Connecticut House Bill 7310 Looks to Legalize Blockchain Smart Contracts for Businesses. Here’re most prominent words:
- Blockchain Technology
- House Bill 7310
- Smart Contracts