The California state legislature has approved a draft of a new law creating a legal framework for using blockchain-data and smart contracts.
The new bill legalizes the use of blockchain and smart contracts both in domestic and international trade. It provides for the introduction of 2658 amendments to the Civil Code of the State, the Government Code, the Code of Corporations and the Insurance Code. The draft law states that a legal entity that uses blockchain technology to protect data in the course of trading transactions retains the same ownership and use rights as before the data was entered into a distributed database.
The document gives legal definition to such concepts as “blockchain technology” and “smart contract”. According to the current law on electronic transactions in the state of California, the contract can not be deprived of legal force or enforcement only because a signature was used for its conclusion electronically. Under the new bill, the replacement of a written electronic signature completely satisfies the law.
One of the most important definitions of the new draft law reads: “blockchain-system technology is a distributed registry technology that uses a distributed, decentralized, common database of interrelated data that can be public or private, allowed or managing tokenized crypto-economics or tokens.”
The bill was submitted for consideration at the beginning of this year. On August 23 he was received in the State Senate and on the 27th in the Assembly. If the document receives the signature of the state governor, Jerry Brown, the new law will come into force in the near future.