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Delaware Governor Signs Blockchain Regulation Bill into Law

Last Updated September 28, 2020 10:41 AM
Rebecca Campbell
Last Updated September 28, 2020 10:41 AM

The governor of Delaware has officially signed a bill into law that recognizes the trading of stocks on the blockchain.

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

Passing the House at the end of June with one vote against it out of 41, this step brings to end a campaign that began in May 2016 when the then governor of Delaware, Jack Markell, announced plans to embrace the blockchain and smart contract technology. It was also hoped that the initiative would provide a legal and regulatory environment for the development of the technology in the state, in addition, to help attract blockchain companies to Delaware.

Now, after many weeks when the bill passed the House, the governor of Delaware, John C. Carney Jr., has put pen to paper and made the recognition official.

Delaware Embraces the Blockchain

Delaware is one state in the U.S. that has taken embracive steps toward innovative technology.

Previously, a Delaware judge had been reported to have urged investors to protect their votes through the distributed ledger. Last November, vice-chancellor J. Travis Laster, said that the technology could help shareholders remove the middleman when it came to votes and shares.

According to Laster, the current system is outdated and too complex, making it difficult to determine who exactly owns a share and how it’s utilized in decision making.

However, with the recent signing into law, it remains to be seen what impact the blockchain bill will produce within Delaware. Yet, it could pave the way for other states to look into the technology more as it gains prominence in several use cases among various industries.

Arizona is another state that is leading the way with technology. In March, it was reported that the Senate had passed a bill that would give smart contracts and blockchain signatures legal binding status.

Featured image from Shutterstock.