Connecticut is all set to legalize smart contracts in business. House bill 7310 filed by The Commerce Committee of the Connecticut General Assembly on Friday, proposed the authorization of blockchain smart contracts for commerce and business-related services in the state.
The bill proposes equal rights and rightful recognition to firms and enterprises using smart contracts on blockchain technology which was a restricted notion as compared to the traditional methods used for business transaction and securing information. According to the bill, the state of Connecticut would legalize blockchain-based smart contracts which were elsewhere in a gray state. In other words, the bill defends blockchain activity and states that no transaction’s legality should be decided on the grounds of whether or not it uses smart contract technology.
The Chamber of Digital Commerce expressed disapproval on their part stating that the ratification of blockchain technology and smart contracts by the government and their respective states would hinder and affect the overall growth and progression of the industry.
Recognizing the Legal Rights of Smart Contracts in the US
The news of the state of Connecticut comes in the wake of a similar bill that was passed in the U.S. state of Ohio. The said bill came into effect last August and identified blockchain based smart contracts as rightful measures of storing and transferring data and information. The bill modified and amended certain sections of the Uniform Electronic Transactions Act for the inclusion of blockchain records and smart contracts.
The recognition and implementation taken by US courts and state is a significant step in the legalization of digital rights of the blockchain industry. As of now, Connecticut has become the latest state to recognise smart contracts and blockchain activity as electronic records after the states of California, Arizona, Tennessee and Ohio.