Blockchain Legislation Bill Has Been Signed into Law by Delaware Governor

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by Tatsiana Yablonskaya · 3 min read
Blockchain Legislation Bill Has Been Signed into Law by Delaware Governor

The bill legalizes the trading of stocks on the blockchain paving the way to the technology wider adoption.

Goods news comes from the state of Delaware, mostly known for its interest in the blockchain technology. John C. Carney Jr., the state’s governor, has legalized the trading of stocks on the blockchain.

The bill passed the House last month with one vote against it out of 41. Now, weeks of anticipation later, John C. Carney officially signed a bill into law. This is a happy end of the initiative started in May 2016 when Jack Markell, who took the position of Delaware governor at that time, announced the intention to drive the use of the distributed ledgers by Delaware-based public and private enterprises. Blockchain was seen as a technology capable of reducing transactional costs, minimizing the risk of fraud and automating manual processes.

The state aimed to create a welcoming regulatory environment and establishing blockchain legal infrastructure to boost the development of the technology.

“The next logical step in this process is the development of a new category of corporate shares: distributed ledger shares,” Markell unveiled upcoming plans. “Right now the state is in the planning stages; we believe this project has great potential but we also must be prudent. Our aim as is always is to harness benefits of new technologies while minimizing the risk for businesses.”

Delaware focuses on blockchain

There have been several initiatives in Delaware allowing to say that the state takes serious steps towards the blockchain wider adoption.

Earlier, a Delaware judge encouraged investors to protect their votes through the distributed ledger.

Last year, vice chancellor J. Travis Laster explained the benefits of blockchain for shareholders saying that the technology could eliminate the need for middlemen when it comes to votes and shares. Now, it is difficult to determine who exactly owns a share and how it’s utilized in decision making. The current system is too burdensome and definitely needs an update.

In April, the Corporation Law Section of the Delaware State Bar Association (DSBA) had approved Delaware Law Amendments intended to deliver statutory authority for businesses in the state to use the blockchain to maintain corporate records.

The time will show if the recent legalization of the trading of stocks on the blockchain will bring results. What is obvious right now is that Delaware takes an advantage of being the first US state to appreciate the potential of blockchain for various industries.

Arizona follows Delaware leading its own way with the technology. In March, the Senate passed a bill giving smart contracts and blockchain signatures legal binding status.

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