Iowa house gives its approval to a bill that’ll legalize smart contracts on blockchain technology. Therefore, every transfer or registration made via blockchain smart contracts will become a legal transaction.
This new development occurred in the Iowa House of Representatives. The House finally approved bill-SF541 which the Senate had approved earlier in March.
Bill SF541 and Blockchain Smart Contracts
This new bill has given the same legal recognition which general contracts enjoy all these while. Smart contracts will be recognized as legally binding on the parties to contract even if they concluded it on the blockchain. Also, the law will recognize the blockchain as a secured electronic store of transaction records.
According to the bill, every contract will have a legal effect even if the parties concluded it on the blockchain. As such, smart contracts are now enforceable under the law. Also, the bill specified that every registration of rights/ownerships is no longer invalidated. By broadcasting it on a network unless such transaction is related to that specific transfer of rights.
Another important part of the bill is that those carrying out foreign transactions use distributed ledger technology to keep information. And as such, they still have the right to the information secured on the DLT unless there’s a term that specifies the transfer of rights of ownership or use or the information in the contract.
Iowa House and The Bill Passing
There was no contest over the bill on the 29th of March as the House approved it. The representatives voted 94-0, just like what happened in Senate when the bill passed with 47-0
One of the democrats in the House, Steve Hansen, made a statement that the bill will be a stepping stone towards crypto regulation which includes Bitcoin.
Another representative in the House, Jeff Shipley, a republican, however, stated that the bill focused more on definitions than regulations for now and also indicated that he expected that Bitcoin would have been covered in those definitions.