Ohio can join the ranks of U.S. States that recognize the legal power of smart contracts and records that are stored in the blockchain. The bill is now under consideration in the Parliament of the state.
Bill 300, introduced in the state Senate, was introduced by Senator Matt Dolan (Matt Dolan). The project involves the modification of the sections of the common law on electronic transactions, to include records in the blockchain and smart contracts. In addition, the bill, if passed, will give smart contracts the same legal force, which have the usual contracts.
In the case of adoption, the bill adds to the law the amendment that the technology of the blockchain can be used for the storage of electronic information and the granting of property:
«Regardless of the terms of any other law, a person that uses the blockchain technology to protect the information that it owns or has the right to use, retains the same rights of ownership or use in respect of that information, as before it retained the information using the technology of the blockchain».
The proposed bill also States: «This section does not apply to the use of blockchain technology to protect information in connection with the transaction to the extent in which the terms of the transaction expressly provide for the transfer of ownership or the limited use of this information.»
In addition, the bill changes the definition of electronic contracts in another section and add in the phrase about what «smart contracts can exist in the trade.»
The bill also suggests another change. Although the current law already States that «a contract cannot be denied legal effect or enforcement because at its creation was used electronic records», in the framework of the project 300 will be added the phrase «or because the contract contains the terms smart contract». This will allow to consolidate the use of smart contracts as legal documents.
Similar bills are being considered or already enacted in other States. For example, in March last year in Arizona was signed
a bill that signature in the blockchain and smart contracts using officially recognized as legally binding, and in April of this year in the state the Grand Canyon was legalized
storing data in the blockchain.
Now in California, a bill that allows companies to store the blockchain data, including information about shareholders. Likewise, companies can use the blockchain for administrative purposes in Delaware and Wyoming.
In General we can say that the American States are at the forefront of the adoption of the regulation on cryptocurrency and the blockchain. According to a recent message
The Brookings institution, a majority of U.S. States have already adopted regulations in relation to cryptocurrency and blockchain technology.